Collateralized Loan Obligations (CLOs) were once the domain of institutional finance. However, the advent of ETFs have democratized access to this specialized corner of the structured credit market.
The March 2026 ETF Flash Flows report from State Street Investment Management revealed a fixed income market landscape defined by stubborn inflation and rising yields. The report highlighted record-breaking inflows into short-term fixed income instruments.
The global credit markets continue to evolve, enabling advisors to take a more tailored approach to diversifying fixed-income exposure through collateralized loan obligations (CLOs). While the demand for yield is unwavering, some investors aren't just seeking income.
Before the advent of exchange-traded funds (ETFs), investing in collateralized loan obligations (CLOs) was limited to insurance companies, pension funds, sovereign wealth funds, and other institutional investors. In recent years, however, ETFs have significantly expanded access to CLOs.
The announcement of a new U.S. Federal Reserve chairman has introduced additional uncertainty to the markets, particularly within the fixed income sector. To address potential income risk, investors may want to consider diversifying their portfolios with collateralized loan obligations (CLOs).
Reckoner Capital Management, an ETF provider whose product line targets the collateralized loan obligation (CLO) space, is expanding its lineup with four new funds to increase distribution flexibility.