Alyssa Irving, fixed income portfolio manager, delves into the evolving role of active ETFs in the AAA CLO market. In this new video, she explores how their substantial growth as a new investor base is a healthy evolution of the market.
In our view, this more diversified set of buyers means the future of the AAA CLO market likely won't mirror the past. Active ETFs are driving greater liquidity and trading opportunities, and this behavior differs from the space’s traditional buy-and-hold strategies. We believe the AAA CLO market is likely to see greater trading volume, more spread volatility, and more opportunities for active management going forward.