BondBloxx, a leading fixed income ETF provider, is set to launch the first ETF offering direct exposure to private credit on Tuesday, December 3rd.
“We’re very pleased to be adding PCMM to our lineup of innovative income-generating solutions,” said Leland Clemons, Founder and CEO of BondBloxx.
Private credit is a rapidly growing segment of the U.S. financial markets, valued at over $30 trillion. Historically, this asset class has been largely accessible only to large institutional and high-net-worth investors.
The BondBloxx Private Credit CLO ETF (PCMM) gives investors direct access to private credit from middle-market companies. These businesses, numbering approximately 300,000 in the U.S., generate $13 trillion in annual revenue and drive one-third of the U.S. private sector GDP.
“With the launch of PCMM, investors can now access private credit via an ETF,” Clemons added. “The ETF industry has continually innovated for investors, and we’re proud to lead that innovation in the fixed income space. Bringing private credit to ETFs redefines what’s possible in fixed income investing.”
PCMM will allocate at least 80% of its assets to private credit collateralized loan obligations (CLOs). A key advantage of the ETF is its broad exposure to CLOs from major underwriters, ensuring a diversified range of investment opportunities.
“Private credit exposure offers significant diversification, but the real benefit comes from the diversified holdings within the fund itself,” explained Tony Kelly, Co-Founder of BondBloxx. “By including CLOs from a range of underwriters, PCMM provides investors with broader access to U.S. middle-market opportunities, all within an ETF structure that offers liquidity, transparency, and cost advantages.”
“This ETF leverages our expertise in private markets investing to meet client demand for access to private credit,” said Vivek Bommi, Head of Leveraged Credit at Macquarie Asset Management, which serves as the fund’s sub-adviser. “The launch of PCMM is a major step in expanding private credit access and reinforces our commitment to delivering strong outcomes for investors.”
BondBloxx identifies several potential uses for PCMM in portfolios, including:
- Strategic allocation for enhanced returns and diversification
- Complementing broader credit in fixed income allocations, including both public and private corporate bonds
- Serving as the liquid portion of private credit and alternatives allocations
“We are excited to offer investors an efficient way to participate in private credit,” Clemons concluded. “For the first time, all investors now have access to private credit as a key portfolio component, and we are proud to add PCMM to our portfolio of innovative income-generating solutions.”
