Leveraged loans in CLOs that are held by exchange traded funds, or ETFs, have stronger credit fundamentals than the U.S. market average, according to a study of Octus’ Portfolio Analytics data. While the trend is true across the range of ETF products, loans in the CLOs held by mezzanine ETFs had the strongest metrics overall, ahead of the portfolios of CLO ETFs focused on the top of the capital stack.

This content is part of Octus’ expanded CLO Insights.