Liquid Alternatives: Panagram Launches Its Maiden ETF Focused On Collateralized Loan Obligations
Panagram Structured Asset Management is a $13.5 billion credit asset manager.
Panagram Structured Asset Management, a subsidiary of Eldridge, has launched its first ETF, the Panagram BBB-B CLO ETF (NYSEARCA: CLOZ).
Panagram BBB-B CLO ETF (NYSEARCA: CLOZ)
CLOZ is an actively managed fund that invests in collateralized loan obligations (CLOs) and aims to provide investors with a liquid alternative to traditional fixed income with attractive structural features and competitive yield. (ETF Trends/VettaFI)
CLOs have historically provided higher yield than similarly rated corporate bonds and benefit from structural rules that may benefit investors from credit loss. The fund will invest in mostly BBB- and BB-rated CLO bonds and is expected to pay a monthly dividend. CLO bonds rated BBB and BB not only tend to provide higher current yield than comparable credit products but also maintain low correlations to public debt and equity markets.
The fund’s team has extensive experience in the CLO market, which has grown to $1 trillion in size. Furthermore, Panagram’s long-standing relationships in the institutional CLO market give it access to assets that have the potential to offer monthly income while diversifying away from stocks and bonds.
The ETF is listed on the NYSE and has an expense ratio of 0.50%.
“Our goal is to provide investors with a liquid alternative to traditional fixed income with attractive structural features and competitive yield,” said John Kim, CEO of Panagram and portfolio manager of CLOZ. “We recognize how difficult 2022 was, and the historical outperformance of CLO tranches versus other corporates led us to create this innovative floating-rate product for the retail investor. We are excited to launch CLOZ, which seeks to democratize CLO exposure and provide investors with the added benefit of expert oversight.”
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