BlackRock Amps Up CLO-for-the-Masses Trend With New ‘BBB-B’ ETF

BlackRock Inc. is diving deeper into the burgeoning world of exchange-traded funds that track collateralized loan obligations.

The world’s largest asset manager is set to launch its iShares BBB-B CLO Active ETF, which invests in CLOs rated from BBB+ to B-, on Thursday. Trading under the ticker “BCLO”, the ETF will give ordinary investors access to a product with higher yields than most other CLO ETFs, but also more risk. BlackRock launched its first ever CLO-tracking ETF in 2023 (ticker CLOA), which as the ticker name suggests invests in top-rated CLOs.

Money managers are able to create CLOs by bundling ...