BondBloxx, a fixed income ETF provider, will launch on Tuesday, Dec. 3, 2024, designed to offer investors direct exposure to private credit. The BondBloxx Private Credit CLO ETF (PCMM) is designed to provide direct exposure to private credit middle market companies.
“With the launch of PCMM, investors can now access private credit with an ETF,” Leland Clemons, founder and CEO of BondBloxx, said. “The ETF industry has been a force of continuous innovation for investors, and I am proud that BondBloxx is a leader in that innovation in fixed income. We’re thrilled to bring private credit to ETFs, and we look forward to redefining what is possible in fixed income ETFs.”
PCMM invests at least 80% of its assets in private credit collateralized loan obligations (CLOs). A specific benefit of this ETF will be the ability to own private credit CLOs from any of the major underwriters.
“The portfolio diversification offered by private credit exposure is a key aspect of this new fund, but just as important is the diversified nature of the fund’s holdings themselves. By not limiting the universe of private credit opportunities to a single underwriter, PCMM is better equipped to provide investors with opportunities across the entire U.S. middle market,” Tony Kelly, co-founder of BondBloxx, said. “Through PCMM, we are now able to offer investors an efficient way to participate in private credit with the liquidity, transparency and cost advantages of an ETF.”
“This new ETF leverages our expertise in private markets investing to meet the client demand for access to private credit exposures,” Vivek Bommi, head of leveraged credit at Macquarie Asset Management, which acts as the fund’s sub-adviser, said. “The launch marks a significant step in expanding access to private credit and reinforces our commitment to delivering compelling outcomes for investors.”
“The use cases are many and now, for the first time, all investors have access to private credit as a portfolio building block,” Clemons said. “We’re very pleased to be adding PCMM to our lineup of innovative income-generating solutions.”
