CLO market shakes off ETF outflows
Despite record redemptions, exchange mechanics and relatively small volumes cushioned impact
Record outflows from exchange-traded funds holding collateralised loan obligations (CLOs) had little impact on the underlying market during the tariff-induced volatility in April thanks to their relative size and the structure of redemptions, according to traders.
Following $26 billion of inflows over the two years through February, the largest CLO-backed ETFs saw outflows totalling $1.6 billion in March and April.
ETFs can represent a more liquid alternative than trading their underlying
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