CLO ETFs Boom on Higher Rates, Private Debt Woes (opens original article in a new tab)

CLO ETFs are experiencing significant growth as investors look to capitalize on higher interest rates and avoid risks in private credit, with major firms launching new funds and inflows reaching $9 billion this year.

• CLO ETFs are booming as investors seek higher yields amid elevated interest rates and private credit risks.
• Firms like Franklin Templeton and Barings have launched CLO ETFs to target investment-grade tranches of collateralized loan obligations.
• Inflows into US CLO ETFs reached $9 billion this year, with concerns about defaults in private credit funds driving the shift.