PGIM launches PAAA ETF to meet demand for AAA-rated CLOs

PGIM has launched a new product, the PAAA ETF, to address the growing demand for AAA-rated collateralized loan obligations (CLOs). This comes as the market has seen a rise in AAA CLO tranche ETFs, following the success of the Janus Henderson AAA CLO ETF. Five years ago, there were no AAA CLO tranche ETFs available. The introduction of PAAA reflects a shift in the investment landscape, as major asset managers recognize the need for these financial products. The increase in AAA CLO ETFs indicates a significant change in investor interest and market offerings, providing more options for those looking to invest in this asset class.