Retail Investors Can Now Access CLO Yield

at the at the heart of AAM, at the DNA of within AAM is really income investing.

Um, you know, whether it's dividends on equities or coupons and fixed income, we're really focused and we actually have a resilient income ETF lineup which clock is part of our newest edition.

Um, and this is an area the CLLO market, um, you know, the collateralized loan obligations CLLO market.

We've been keeping an eye on this space for quite some time.

Um, it's a roughly a1 to$ 1.5 trillion market which otherwise uh up until recently, I'd say within the last four or five years, really hasn't been accessible for retail investors.

And over the last four or five years, we've seen nearly $40 billion of assets come into CLO ETFs.

And we're seeing an increased appetite for not only institutional investors but retail investors dabbling in CLLO ETFs.

And what we've done with CLLO is we realize that the CLLO market is quite complex.

Right?

At the end of the day, folks, investors are drawn to the CLLO market mainly because of the yield pickup. the you know it's not uncommon to get 100 200 basis points pickup in the investment grade arena over similar corporate bonds because of the complexity of CLOS's and that yield pickup has really been beneficial to investors and we'll get to to this in a little bit but we think it's going to be exceptionally beneficial as interest rates continue to come down investors are faced with very very hard challenges in terms of you know unfortunately you can't sit on the sidelines and collect 4% in their money market funds anymore.

If interest rates can we, you know, obviously we had a rate cut in October. if we have another in December.

You know, now is the time to get off your cash, as we say here at AAM, and explore areas of the market like the CLLO market or low duration income strategies uh to help facilitate that that need for income.