Janus Henderson’s JAAA Just Topped $30B. What’s Next For CLOs?
Janus Henderson's CLO ETF (JAAA) recently crossed the $30 billion mark in assets under management (AUM), marking a significant milestone for collateralized loan obligations (CLOs). This follows a surge in launches within the CLO category, with Pacer ETFs, Barings, and Fidelity introducing new funds. The popularity of CLOs can be attributed to their downside protection, excess yield, and diversification possibilities.
As inflation continues to rise and interest rates remain steady, CLOs offer attractive opportunities for investors seeking income and risk mitigation. Despite the challenges of forecasting rates and market trends, the growth in CLO ETFs demonstrates the increasing interest from investors in this asset class.
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