ETFs

Last week, JPMorgan CEO Jamie Dimon raised the alarm over certain corners of the credit markets might see outsized losses if the economy sours.

Over the past two years, volume in the $30 trillion US government bond market was about 58% higher than average on the last trading day of the month, the New York Fed found.

Interest in CLO ETFs, an asset class that's only been around since 2018, is picking up, with the number of funds doubling since August to a total of 24.

The giant asset manager is launching new CLO funds that generate higher returns without significantly increasing risk–by focusing on the less-favored tiers of CLO stacks.

FS grew its CLO business and now manages four CLOs totaling $1.4 billion. The manager's risk-averse growth avoids complications that are still unfolding liability management exercises.

BHI has extended the revolving line of credit agreement with Lendbuzz to $50 million, and Janus' B-BBB Collateralized Loan Obligation ETF has surpassed $1 billion in assets.

With the Federal Reserve poised to cut rates as soon as September, investors poured $245 billion overall into active and index mutual funds and exchange-traded funds in the first half of the year, according to Morningstar Direct.

Electronification of trading could fundamentally alter loan and CLO markets.

It comes as investors begin to reshuffle their portfolios at the mid-year mark, while traders earlier this week embraced bets on 3 percentage points of cuts over the next nine months.

Contenders see plenty of room for the market of EFTS investing in CLOs to grow. The question is if they can potentially usurp some of banks' dominance in AAA-tranche investing.