Pimco Senior Loan Active Exchange-Traded Fund

LONZ seeks current income through the active management of US dollar-denominated senior floating rate bank loans that are rated below investment grade.

We are downgrading the PIMCO Senior Loan Active Exchange-Traded Fund to 'Hold' due to ongoing monetary easing and decreasing yields. The Fed's rate cuts have significantly lowered the yield curve, impacting LONZ's dividend yield, which is set to decline further. The Fund's overweight position in single-B credits, combined with historically low credit spreads, presents heightened risk in a potential recessionary scenario.

LONZ: Lower Fed Funds Make This Name A Hold (Rating Downgrade)

The PIMCO Senior Loan Active ETF offers prudent exposure with low price risk and high-income attributes. LONZ's near-zero effective duration and diversified corporate bank loans portfolio mitigate interest rate sensitivity, which I deem beneficial in today's uncertain economic environment. Despite investing in non-investment-grade loans, LONZ's position in the debt waterfall structure, compelling forward dividend yield, and potential for enhanced net income translate into play into a favorable trajectory.

LONZ: A Throughout-The-Cycle Asset

The LONZ ETF is an actively managed portfolio of leveraged loans. Adjusted for leverage, LONZ's performance appears identical to a passive leveraged loan ETF. With a looming economic slowdown, investors may want to consider higher credit-quality investments like the JAAA ETF.

LONZ: High Yield From Leveraged Loans

Invesco Senior Loan ETF

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The Federal Reserve continues to hold fast to its highly data-driven, wait-and-see approach on rate policy. Last week's FOMC meeting further bolstered the market's belief in a lone rate-cut scenario, and senior loan ETFs have gained traction as elevated rate expectations spill over into the second half of the year.

Business of Bonds: Senior Loan ETFs Take the Spotlight

This article explores the PIMCO Senior Loan Active Exchange-Traded Fund ETF, a fixed income fund launched by PIMCO in 2022.

LONZ: Under The Radar Fund From PIMCO, 7% Yield

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A changing interest rate narrative prompted many advisors and investors to reevaluate their bond exposures this month. Asset managers stepped in to offer their perspectives on the changing market dynamics and where the risks and opportunities lie in the 2024 Fixed Income Symposium hosted by VettaFi.

Recapping the 2024 Fixed Income Symposium

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Fixed income ETFs gathered $51 billion of new money in the first quarter. This represented 26% of the industry's net inflows.

Looking to Loan ETFs

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Hello, VettaFi Voices! The Wall Street Journal mentioned today that the 10-year Treasury yield is the highest it's been since 2007 as we head into another earnings season.

VettaFi Voices On: Investments for a (Not so) Scary Market

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With the Fixed Income Symposium taking place on Monday, July 24, the VettaFi Voices gathered at the water cooler to discuss the current state of fixed income markets.

VettaFi Voices On: The State of Fixed Income

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This week, the VettaFi Voices gathered around the water cooler to talk about fixed income.

VettaFi Voices on: What's Overlooked in Fixed Income

PIMCO Active Bond ETF

It has been nearly 30 years since the first U.S.-listed ETF began trading, so it is rare to find a new first for the industry to occur. Yet today, the PIMCO Active Bond ETF (BOND) became the first active ETF to be traded from an actual booth on the New York Stock Exchange (NYSE) floor.

PIMCO's ETF Transfer to NYSE Floor Trading Is a Key Milestone

The Senior Loan Active Exchange-Traded Fund (LONZ) started on June 8, 2022, and will actively manage itself using the iBoxx USD Liquid Leveraged Loans Index. With an effective duration near .6 years, PIMCO believes it's a good ETF for times like these when interest rates are climbing. The Index has a .2 duration.

LONZ: PIMCO Launches Short Duration Senior Loan ETF

PIMCO is expanding its actively managed fixed income exchange traded fund suite with the addition of a new ETF that may help diversify fixed-income allocations for investors concerned about rising rates. The PIMCO Senior Loan Active Exchange-Traded Fund (NYSE Arca: LONZ) aims to find compelling opportunities in the senior loan market where investments may offer [.

Through LONZ, PIMCO Seeks Compelling Opportunities in the Senior Loan Market

News for Pimco Senior Loan Active Exchange-Traded Fund ETF (LONZ)