ETF 106: Debunking Myths About Fixed Income ETFs

Fallen angels outperformed broad high yield by 0.24% in March and 0.10% YTD, due in part, to tighter spreads. Q1 2024 saw two fallen angels and two rising stars.

Despite their lack of inclusion in broad “agg” indices, CLOs have proven they belong in investors’ core bond portfolios.

Preferred securities are trading at attractive discounts, however, just as many are looking to manage their Mag 7 exposure, we believe the same risk management applies to preferreds as well.

Investors new to CLOs often stick with AAAs, but we argue investors should consider looking at lower rated tranches.