PAAA: Newer AAA CLO ETF, Competitive Yield, Stable Share Price
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PAAA is a new ETF focused on AAA-rated CLOs, offering a 5.9% yield with zero default rates. Despite potential Fed rate cuts, its yield is expected to remain competitive, trading at a 1.0% - 1.5% spread to t-bill rates.
January 18, 2025 | 7:15 am
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PAAA is a new ETF investing in AAA-rated CLOs with a 5.9% yield and zero default rates. Its yield is expected to remain competitive even with potential Fed rate cuts.
PAAA's focus on AAA-rated CLOs with zero default rates and a 5.9% yield makes it attractive. The potential Fed rate cuts are unlikely to affect its competitive yield, which trades at a 1.0% - 1.5% spread to t-bill rates, suggesting stability and potential for price appreciation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100