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Introduction
It's been an unusual year for the Janus Henderson AAA CLO ETF (NYSEARCA:JAAA), as noted in my last update on it in March. Essentially, the fund had a rough patch where it was
JAAA: Underperformance Corrected, Warning Stays
Summary
- Janus Henderson AAA CLO ETF has experienced an unusual year, marked by significant market fluctuations and investor sentiment shifts.
- The ETF's performance has been influenced by macroeconomic factors, including interest rate changes and credit market conditions. There has been a lot of commentary on "widening credit spreads."
- Despite volatility, JAAA's high-quality collateralized loan obligations offer a compelling risk-reward profile for long-term investors, especially if.
- The recommendation is to consider a move to T-bills and diversifying across other AAA CLO funds if the risks that showed themselves in Q1 prove too risky for you.
John "Jack" Bowman is a registered investment advisor, economics educator, research analyst, and commentator from Southern California. He mostly covers macroeconomics, income-focused investments, derivatives, alternatives, and portfolio management. "History does not repeat, but it does instruct." — Timothy Snyder, On Tyranny
Analyst’s Disclosure: I/we have a beneficial long position in the shares of JAAA, JBBB, SGOV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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