Richard Drury/DigitalVision via Getty Images The VanEck AA-BB CLO ETF ( CLOB ) is exactly what it says on the tin: an AA-BB CLO ETF. CLOB's portfolio is a bit more diversified than those of its CLO peers, with a solid 6.5% dividend yield and an above-average performance track record. Risks are below average, if a tad higher than expected considering the fund's strong credit quality. Overall, CLOB ...
Richard Drury/DigitalVision via Getty Images The VanEck AA-BB CLO ETF ( CLOB ) is exactly what it says on the tin: an AA-BB CLO ETF. CLOB's portfolio is a bit more diversified than those of its CLO peers, with a solid 6.5% dividend yield and an above-average performance track record. Risks are below average, if a tad higher than expected considering the fund's strong credit quality. Overall, CLOB is a strong investment opportunity and a buy. CLOB - Overview and Analysis Strategy and Portfolio CLOB is an actively managed diversified CLO ETF. In short, CLOs are securitized portfolios of variable-rate corporate loans with varying degrees of credit risk. We wrote a longer explanation the last time we covered it here . CLOB is relatively unique in the CLO space due to investing in CLOs of several credit ratings, from AA to BB. It does focus on the higher-quality CLOs, with over 80% of its portfolio being investment grade and over 40% being AA. CLOB CLOB is actively managed, as are, I think, all CLO ETFs. Active management means potentially higher income and returns, contingent on management making profitable, effective investment decisions. Risks are higher too, insofar as management can make unprofitable decisions too. I think the risks here are more minor due to the fund's diversified, quality holdings: there is simply less room for error for higher-quality investments. Risk and Volatility CLOB focuses on high-quality CLOs, so credit risk is quite low. One would expect high-quality CLOs to experience relatively few losses during downturns and recessions, but from prior coverage, losses tend to be moderate, sometimes high. In my opinion, this is due to illiquidity and due to perceptions of risk: investors think of CLOs as risky, so they sell these when times are tough. With its inception in early 2025, CLOB has yet to experience a meaningful downturn or recession, so we can't really analyze its performance during one. The closest event to a recession was the equity bear...
Because of Blue Owl, concerns over private BDCs have spilled over to push down prices of publicly traded BDCs — many of which trade at large discounts to their reported asset valuations.
Because of Blue Owl, concerns over private BDCs have spilled over to push down prices of publicly traded BDCs — many of which trade at large discounts to their reported asset valuations.
Olga Yastremska The U.S. dollar’s ( DXY ) recent decline—down 8.1% from a year ago—is nothing companies with historical selloffs, and remains overvalued on the most objective measures, according to Karl Schamotta, chief market strategist at Corpay Currency Research. Schamotta added that after a near-term hawkish repricing, the dollar ( DXY ) could even fall a lot farther if the policy direction do...
Olga Yastremska The U.S. dollar’s ( DXY ) recent decline—down 8.1% from a year ago—is nothing companies with historical selloffs, and remains overvalued on the most objective measures, according to Karl Schamotta, chief market strategist at Corpay Currency Research. Schamotta added that after a near-term hawkish repricing, the dollar ( DXY ) could even fall a lot farther if the policy direction doesn’t change. The dollar's decline (Federal Reserve, Karl Schamotta, Corpay Currency Research) The inflation adjustment dollar ( DXY ) has only declined about 10%, compared to the fourth quarter 2024 high, which was driven up by the initial Trump trade policy. “The inflation-adjusted dollar is more or less back where it was in 2023 and most of 2024—and that is still a very strong dollar,” said Brad Setser, economist and former Counselor to the U.S. Trade Representative. Other crises have led the U.S. dollar to decline way further. For example, during the financial crisis, the U.S. dollar dropped -28% from its high back then. Year-to-date, the U.S. dollar index ( DXY ) is -0.4%, and from a month ago, it is -1% More on US Dollar Index Tariff Decision Day? What I Expect To See When The Supreme Court Wraps Up The Tariff Debate FX Market Awaits North American Leadership SCOTUS ruling could put over $175B in U.S. tariff revenue at risk, Penn-Wharton estimates Fed Governor Stephen Miran becomes a little less dovish - report
New head faces decisions crucial to movement’s future, such as how far to cooperate with Trump’s Gaza peace plan Hamas has reportedly begun holding leadership elections among its members at a time when the militant Palestinian movement faces imminent decisions which will be critical to its own continued existence and the potential for peace in Gaza. According to the BBC and press reports in the Gu...
New head faces decisions crucial to movement’s future, such as how far to cooperate with Trump’s Gaza peace plan Hamas has reportedly begun holding leadership elections among its members at a time when the militant Palestinian movement faces imminent decisions which will be critical to its own continued existence and the potential for peace in Gaza. According to the BBC and press reports in the Gulf, Hamas members in Gaza have already voted. Those in the West Bank, in Israeli prisons and the diaspora are also expected to cast ballots for delegates to the movement’s 50-member general Shura council, which ultimately chooses its politburo and a new interim leader. The process could last weeks. Continue reading...
Oracle is in the midst of a major expansion of its data center footprint to support contracted AI workloads. Its aggressive capital spending has weighed on ORCL stock.
Oracle is in the midst of a major expansion of its data center footprint to support contracted AI workloads. Its aggressive capital spending has weighed on ORCL stock.
Trade-related stocks, including retailers, industrials and autos, spiked Friday after the US Supreme Court struck down Donald Trump’s sweeping global tariffs. Bloomberg's Poonam Goyal joins to discuss. (Source: Bloomberg)
Trade-related stocks, including retailers, industrials and autos, spiked Friday after the US Supreme Court struck down Donald Trump’s sweeping global tariffs. Bloomberg's Poonam Goyal joins to discuss. (Source: Bloomberg)
The four astronauts heading to the moon for the lunar fly-by are the first humans to venture there since 1972. The ten-day mission will travel more than 600,000 miles. (Image credit: Miguel J. Rodriguez Carrillo)
The four astronauts heading to the moon for the lunar fly-by are the first humans to venture there since 1972. The ten-day mission will travel more than 600,000 miles. (Image credit: Miguel J. Rodriguez Carrillo)
Many cryptocurrencies lost their luster over the past year. High Treasury yields, expectations for slower monetary easing, and waning institutional interest all chilled the market, while leveraged liquidations triggered incessant waves of profit-taking. Some of those cryptocurrencies -- especially "blue chip" ones like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) -- could bounce back if the ma...
Many cryptocurrencies lost their luster over the past year. High Treasury yields, expectations for slower monetary easing, and waning institutional interest all chilled the market, while leveraged liquidations triggered incessant waves of profit-taking. Some of those cryptocurrencies -- especially "blue chip" ones like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) -- could bounce back if the market warms up again this year. However, two other popular ones -- XRP (CRYPTO: XRP) and Dogecoin (CRYPTO: DOGE) -- could still underperform the market because they lack clear near-term catalysts. Image source: Getty Images. Continue reading