Monetary Matters with Jack Farley The ETFization of Private Credit | Leland Clemons on Fixed Income Flows, ETF Mechanics, and High-Yield Bond Market
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Aug 12, 2025 Leland Clemons, co-founder and CEO of BondBloxx, dives deep into the world of fixed-income ETFs. He discusses the revolutionary first private credit ETF focused on middle-market CLOs. Listeners will learn about the intricate mechanics behind ETF creation and the emerging trends in investor behavior toward fixed assets. Clemons also highlights the complexities of collateralized loan obligations and the evolving landscape of investment strategies, particularly the balance between active and passive management in today's market.
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Fixed Income Outpacing Its Share
- Leland Clemons says fixed‑income ETFs drew over 30% of new ETF flows while holding under 20% of ETF assets.
- Investors now value coupon income and lower portfolio volatility post‑2022.
RIAs Drive Fixed Income Precision
- Leland Clemons says fee‑based advisors increasingly allocate to fixed income and use more specialized ETFs.
- They split exposures by credit quality, region, and duration for precise portfolios.
Prioritize Transparency And Execution
- Leland Clemons advises ETFs must transparently do what they promise and state their strategy.
- He also demands multiple market makers to ensure exchange liquidity.