BondBloxx is set to debut three new funds on Thursday: BBB Rated 1-5 Year Corporate Bond ETF (BBBS) , BBB Rated 5-10 Year Corporate Bond ETF (BBBI) and BBB Rated 10+ Year Corporate Bond ETF (BBBL).
Bonds rated BBB or an equivalent are considered the last rung of investment grade credit.
Tony Kelly, co-founder of BondBloxx, said BBB credit is the "not-so-secret sauce" for active managers trying to beat credit benchmarks.
Of course, economic downturns are always a concern for corporate credit.
This is not unusual for corporate bond funds since banks and other financial institutions issue a lot of short-term debt, but it does suggest that the funds could have some concentration risk.
Persons:
Bonds, Rick Rieder, Tony Kelly, BondBloxx, Kelly, Lauren Goodwin, Goodwin
Organizations:
BBB, Corporate, New York Life Investments, Reserve
Locations:
BondBloxx