BondBloxx Private Credit CLO ETF

PCMM

Market cap $161M

Lately it seems as if most roads lead to the democratization of private markets.

income environment certainly isn't immune to the cause and effects of tariff contagion permeating in the financial markets. Bonds can serve as an ideal ballast for a portfolio in times of market uncertainty.

Private-credit ETFs aren't in 401(k)s yet — but they are Wall Street's latest effort to bring private assets to the masses and, eventually, into retirement plans.

BondBloxx Private Credit CLO ETF is a mid-market CLO and BSL newcomer. The ETF follows a laddered approach to its ratings exposure, has a 30-day SEC yield of around 7.60%, and an expense ratio of 0.68%. Although it possesses an effective duration of merely 0.13, PCMM has a widish option-adjusted spread of 340 basis points and a yield-to-worst of 40 basis points below the YTM.

Joanna Gallegos, Bondbloxx ETFs co-founder, and Todd Sohn, Strategas Securities technical strategist, join CNBC's Dom Chu on “ETF Edge” to discuss the recent volatility in bonds funds, the moves in rates, where ETF inflows are headed and opportunities in the market.

PCMM is an innovative ETF offering retail investors access to the private credit market, specifically through Collateralized Loan Obligation tranches predominantly backed by loans to middle-market companies. The actively managed fund provides a diversified "vertical slice" of CLO tranches (from AAA to BB). Its holdings are primarily floating rate, resulting in a high yield. PCMM specifically provides exposure to loans made to "middle market" companies (typically $10M-$1B in annual revenue).

The BondBloxx Private Credit CLO ETF (PCMM) offers access to private credit CLOs, targeting mid-sized companies with an annual EBITDA between $10 million and $250 million. PCMM's portfolio focuses on senior class A notes with high credit ratings and has a near-zero duration, insulating it from interest rate risks. Despite a competitive SEC yield, PCMM's high expense ratio and limited operating history make it a cautious hold rather than a buy.

During the first week of March, fixed income ETFs gathered more money than equity products. While not rare, this is a sign of uncertainty in the markets.

Fixed income firm BondBloxx celebrated a new milestone recently, crossing $4 billion in ETF AUM. The firm offers more than 20 fixed income ETFs for investors, led by its largest fund, the BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF).

Joanna Gallegos, Bondbloxx co-founder and COO, joins CNBC's Bob Pisani on ‘Halftime Report' to discuss the use of private credit and private equity in ETFs, the controversy surrounding the products and more.