A new fund hitting the market on Tuesday has a phrase in the title that ETF investors are about to become very familiar with: private credit. There is now a few trillion dollars in private credit assets under management, but the total addressable market for the asset class in the U.S. could top $30 trillion , according to consulting firm McKinsey & Company. The use of collateralized debt obligations, which pool a bunch of private credit loans together, is one approach. "The big hurdle to clear in investing in private credit in an ETF is liquidity. One high profile example is the proposed SPDR SSGA Apollo IG Public & Private Credit ETF, a collaboration between ETF giant State Street and Apollo's private credit expertise.

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Persons: CLOs, Tony Kelly, Kelly, We're, Alliance Bernstein, Janus, PCMM Organizations: Nasdaq, Blackstone, Owl, McKinsey & Company, BlackRock, HPS Investment Partners, CNBC, Private Credit, State, Better Markets, Securities and Exchange Commission, Apollo, Alliance, Virtus Private, AAA CLO Locations: U.S, CLOs