‘We don’t believe in the velvet rope:' One money manager is giving retail investors access to private credit. But is it worth it?
Published On Mar 8, 2025, 11:00 AM
The article discusses the increasing accessibility of private credit investments for retail investors, traditionally reserved for wealthy individuals and institutions. BondBloxx has launched a new ETF, the BondBloxx Private Credit CLO ETF (PCMM), to tap into this growing market. The ETF primarily invests in collateralized loan obligations from private credit, aiming to provide retail investors with exposure to this asset class, which has often been criticized for high fees and underwhelming returns. Despite skepticism from some financial analysts regarding the necessity and benefit of such investments for average investors, many believe the ETF could democratize access to alternative investments.
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PCMM
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The launch of the BondBloxx Private Credit CLO ETF aims to attract retail investors looking for alternative investment options at a time when traditional markets are underperforming. Its approach is expected to help lower fees and improve access, potentially increasing its popularity among investors seeking yield in a low-interest rate environment. If the ETF performs well and attracts significant assets, it may encourage more similar offerings in the future.