Monetary Matters with Jack Farley The ETFization of Private Credit | Leland Clemons on Fixed Income Flows, ETF Mechanics, and High-Yield Bond Market
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Aug 12, 2025 Leland Clemons, co-founder and CEO of BondBloxx, dives deep into the world of fixed-income ETFs. He discusses the revolutionary first private credit ETF focused on middle-market CLOs. Listeners will learn about the intricate mechanics behind ETF creation and the emerging trends in investor behavior toward fixed assets. Clemons also highlights the complexities of collateralized loan obligations and the evolving landscape of investment strategies, particularly the balance between active and passive management in today's market.
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Prioritize Transparency And Execution
- Leland Clemons advises ETFs must transparently do what they promise and state their strategy.
- He also demands multiple market makers to ensure exchange liquidity.
Price ETFs By Value, Not Cheapness
- Leland Clemons warns ETF fees need not be ultra‑low for complex exposures.
- He cites the private‑credit ETF at 68 bps as cheaper than alternatives.
Building The First Private Credit ETF
- Leland Clemons says BondBlocks built a private‑credit ETF holding middle‑market CLO tranches.
- The ETF gives diversified CLO exposure without direct loan operational complexity.