The Credit Edge by Bloomberg Intelligence Janus Is Skeptical of Private Credit’s Push Into ETFs
8 snips
Apr 3, 2025 John Kerschner, Head of U.S. Securitized Products at Janus Henderson, shares insights on private credit's entry into ETFs. He argues that retail investors may not be ready due to concerns over liquidity and real economic challenges. The conversation dives into the evolving economy, touching on recession risks and the consumer influence on growth. Kerschner also discusses the dynamics of collateralized loan obligations, emphasizing their performance during the pandemic and cautioning about the distinct risks associated with private credit investments.
AI Snips
Chapters
Transcript
Episode notes
Economic Outlook
- The US economy faces uncertainty due to the new administration's policies and recession fears.
- However, hard data still points to a fairly strong economy, and a recession is not imminent.
Consumer Spending
- The wealthiest 10% of US households drive 50% of consumer spending.
- While inflation impacts lower-income consumers more, the top 10% continue to drive the economy.
CLO ETF Success
- John Kerschner's CLO ETF, JAAA, has proven successful despite initial skepticism.
- The CLO market's large size and liquidity, combined with the lack of defaults in AAA CLOs, make it attractive.