Panagram Bbb-B Clo ETF (CLOZ)

Overview

The Panagram BBB-B CLO ETF (ticker symbol: PBB) provides exposure to a portfolio of broadly syndicated collateralized loan obligations (CLOs) rated BBB-B. It offers investors potential for income and diversification through securitized credit.

Reputation and Reliability

Panagram is a relatively new issuer focused on structured credit ETFs. Their reliability is still being established.

Management Expertise

Panagram's management team has expertise in structured credit and CLOs, crucial for navigating this complex asset class.

Goal

To seek current income by investing primarily in U.S. dollar-denominated, broadly syndicated collateralized loan obligations.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but rather employs an active management strategy focused on security selection and credit analysis within the BBB-B CLO space.

Composition The ETF holds a portfolio of BBB-B rated CLO tranches, offering exposure to leveraged loans through securitization.

Market Share: PBB's market share within the broader CLO ETF market is relatively small.

Total Net Assets (AUM): 21480300

Key Competitors

• JANUS HENDERSON AAA CLO ETF (JAAA)
• INVESCO SENIOR LOAN ETF (BKLN)
• OXFORD LANE CAPITAL CORP. (OXLC)
• EATON VANCE SENIOR FLOATING RATE TRUST (EFR)
• EATON VANCE NEXTSHARES INVST GRADE ET (FTIG)

Competitive Landscape

The CLO ETF market is competitive, with several established players. PBB differentiates itself by focusing specifically on the BBB-B rated segment. Its advantage lies in providing targeted exposure to this part of the capital structure; however, it faces challenges due to its smaller size and newer presence compared to larger competitors like JAAA, OXLC, and BKLN.

Historical Performance: Historical performance data should be obtained from official ETF factsheets and financial websites.

Benchmark Comparison: The ETF's performance should be compared to relevant CLO indices or peer group performance.

Expense Ratio: 0.49

Average Trading Volume

PBB's average trading volume can vary, but it's important for investors to consider the ETF's liquidity before investing, which has approximately 40000 shares.

Bid-Ask Spread

The bid-ask spread can fluctuate based on market conditions, so investors should evaluate these fluctuations for the cost of trading.

Market Environment Factors

Economic growth, interest rate movements, and the health of the leveraged loan market impact PBB. Changes in credit spreads and investor sentiment toward CLOs also play a significant role.

Growth Trajectory

PBB's growth trajectory depends on investor appetite for CLO exposure, its ability to attract assets, and overall market conditions.

Competitive Edge

PBB's competitive advantage lies in its targeted exposure to BBB-B rated CLO tranches, offering a specific risk-reward profile. Its active management may also provide an edge in security selection. The BBB-B rated segment offers higher potential yield than AAA-rated CLOs but also carries greater credit risk. The smaller asset size of PBB, however, could be a disadvantage compared to larger funds.

Volatility

PBB's volatility is likely to be higher than AAA-rated CLO ETFs due to the lower credit ratings of its underlying holdings.

Market Risk

PBB is subject to market risk, including credit risk, interest rate risk, and liquidity risk, inherent in the CLO market.

Ideal Investor Profile

The ideal investor for PBB is someone seeking current income, diversification within fixed income, and who understands the complexities and risks associated with CLOs and is comfortable with moderate credit risk.

Market Risk

PBB may be more suitable for long-term investors seeking income rather than active traders due to the ETF's potential complexity and volatility.

Panagram BBB-B CLO ETF (PBB) offers investors a means to access the BBB-B rated segment of the CLO market. Its active management strategy aims to generate income, but it also carries credit risk inherent in lower-rated securities. Investors should understand the complexities of CLOs before investing in PBB. Compared to broad-based senior loan funds, PBB provides more targeted exposure with potentially higher yield but also greater risk. The ETF is relatively new and small, making liquidity considerations important.

Data Sources:

• ETF.com
• Bloomberg
• Panagram Asset Management

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions. Data is based on available information and may be subject to change.