First ETF Tracking $700 Billion CLO-Market Starts Trading
- Fund focuses on highest-rated collateralized loan obligations
- Industry veterans have expressed concern about retail access
This article is for subscribers only.
Investors will now have their first chance to buy collateralized loan obligations through an exchange-traded fund.
The AAF First Priority CLO Bond ETF begins trading on the New York Stock Exchange under the ticker AAA on Wednesday. The fund tracks the highest-rated CLOs and is actively managed, according to Alternative Access Funds co-founder Peter Coppa, who previously worked as a money manager at Marathon Asset Management. While many loan ETFs exist, AAA is the first focused on CLOs to debut.