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BondBloxx Bets Big on Private Credit Despite Market Fears
5 Feb
Summary
- BondBloxx CEO confident in private credit's income potential.
- ETF offers exposure to over 7,000 diversified private loans.
- Fund launched in December 2024, is up 7% since inception.
BondBloxx ETFs is significantly investing in private credit, with co-founder Joanna Gallegos asserting its value for income-seeking investors, even amidst broader market concerns.
Gallegos, formerly of J.P. Morgan Asset Management, distinguishes BondBloxx's strategy by emphasizing its design for "immense diversification." The BondBloxx Private Credit CLO ETF (PCMM) grants exposure to approximately 7,000 loans, with 80% of its holdings being in private credit.
This approach aims to counter fears of concentrated risk, a concern some have raised about other investment vehicles. The firm launched its pioneering ETF in December 2024, promoting it as the first ETF offering direct private credit exposure.
As of Wednesday, February 4, 2026, the PCMM fund has achieved a 7% return since its launch and a 2% gain over the past three months, according to FactSet.
