Tidal Financial Group, an ETF investment and technology platform, listed Senior Secured Credit Opportunities ETF, an actively managed secured credit fund managed by Gateway Credit Partners. The fund seeks to generate consistent income and preserve capital by investing primarily in a combination of first lien senior secured loans and secured bonds to businesses operating in North America.
“We are excited to partner with the Gateway team who have a long-term track record of active management in the loan and bond markets,” Gavin Filmore, COO of Tidal said. “We believe the corporate credit markets offer investors tremendous opportunities going forward but should be actively managed given the challenging economic environment.”
“We are thrilled to partner with Tidal on bringing this ETF to market,” Tim Gramatovich, founder of Gateway, said. “After almost 13 years of a 0% interest rate policy, fixed income investors have an environment where meaningful yields now exist. At over $3 trillion, the US loan and high yield bond markets offer investors a tremendous opportunity to generate yield. We believe SECD fills a much-needed gap in the actively managed corporate credit space particularly as it relates to the loan market. The loan market has been the purview of CLOs and index products with very little in the way of true fundamental credit work. We view the secondary loan market as very large and inefficient and ripe for generating both significant income and potential capital gains for investors. Key to success here is avoiding what we call “stretch” 1st liens or massively over-levered loans further challenged with fictional accounting metrics known as “pro-forma further adjusted EBITDA.”
