Wealth Management
BondBloxx has introduced the PCMM ETF, the first of its kind to provide direct access to private credit markets through collateralized loan obligations (CLOs). This ETF focuses on middle-market companies, a $5 trillion subset of the $30 trillion private credit market, offering diversification for fixed-income portfolios.
Private credit, characterized by short durations and low correlations to equities, provides resilience against Federal Reserve policy shifts. The fund, which invests 80% of its assets in private credit CLOs, delivers current yields around 7% and charges a 68-basis-point fee.
PCMM is positioned as a liquid, transparent, and cost-effective alternative to traditional private credit vehicles like interval funds. BondBloxx envisions this ETF as a key tool for financial advisors seeking enhanced returns and diversification in their clients’ portfolios.
Finsum: This is another perfect example of ETFs making alternatives or more complicated assets easier for clients.
The New York Times Book Review’s nonfiction selections for 2024 explore profound personal narratives, historical analysis, and timely social commentary. “Cold Crematorium” by József Debreczeni reflects on his harrowing experiences during the Holocaust with striking humor and humanity, resisting platitudes to convey the depth of his observations.
Jonathan Blitzer’s “Everyone Who Is Gone Is Here” examines U.S. immigration policy’s fallout through vivid storytelling and careful analysis, tying human experiences to political decisions.
Lucy Sante reflects on her transgender journey and a life of self-discovery in “I Heard Her Call My Name,” blending intimate memoir with cultural criticism.
In “Reagan,” Max Boot reassesses Ronald Reagan’s political legacy, questioning its role in shaping modern conservatism with depth and nuance.
Finally, Hampton Sides’ “The Wide Wide Sea” chronicles the tumultuous final voyage of James Cook, combining historical scholarship with Indigenous perspectives.
Finsum: These works collectively tackle identity, power, and historical reckonings.
As 2025 approaches, municipal bonds and related ETFs present intriguing opportunities for fixed-income investors. Actively managed options, like the ALPS Intermediate Municipal Bond ETF (MNBD), are outperforming some passive counterparts, showcasing the value of active management in this space.
Experts predict declining muni bond issuance in early 2025, creating a favorable supply backdrop for the asset class. Attractive after-tax yields, such as 6.1% for high tax brackets, are expected to sustain strong demand across mutual funds, ETFs, and managed accounts.
Goldman Sachs Asset Management anticipates robust technical support for munis, highlighting net supply reductions and compelling credit opportunities.
Finsum: For investors seeking accessible exposure, ETFs like MNBD simplify participation in the municipal bond market.
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BlackRock has announced a $12 billion acquisition of HPS Investment Partners, a private credit firm led by former Goldman Sachs and JPMorgan executives. The deal highlights BlackRock’s push into private credit, a rapidly expanding $1.6 trillion market that has grown as banks retreat from leveraged lending.
CEO Larry Fink emphasized the blending of public and private markets as a core feature of modern investing. The move aligns with BlackRock’s broader strategy to deepen its presence in alternative assets, following acquisitions of Preqin and Global Infrastructure Partners earlier this year.
While some industry leaders, including JPMorgan’s Jamie Dimon, have raised concerns about risks in private credit, BlackRock sees significant opportunities for growth.
Finsum: This acquisition could boost BlackRock’s effort to position itself as a leader in alternative asset management.
Preparing for winter’s harshest days requires more than layering up; it demands the right outerwear tailored to the season’s challenges. Here are the key jacket styles, each combining practicality and warmth.
From the parkas used by Arctic communities to bomber jackets born out of aviation needs, each coat carries a legacy of functionality.
Overcoats, waxed canvas jackets, and trench coats offer durability and protection, with features designed for varied conditions.
Meanwhile, puffer and down jackets prioritize insulation, leveraging modern and traditional materials to lock in heat. Finally, the classic peacoat, steeped in maritime history, balances timeless style with winter utility.
Finsum: Wythe in New York City is making one of the most durable heavyweight topcoats that can be perfect for frigid office attire that maintains style.
For value investors looking for opportunities, two large-cap stocks stand out this quarter due to their strong economic moats and undervaluation. PayPal (PYPL) is recognized as a leader in the electronic payments space, with a narrow economic moat that should help it remain competitive for years to come.
Despite recent challenges, including increased competition and the reversal of pandemic-driven growth, PayPal’s focus on top-line growth and product innovation could restore its momentum over time, making its stock price attractive at $104 per share.
Nike (NKE), the world’s largest athletic brand, also enjoys a wide economic moat but has faced difficulties like soft demand and a leadership change. Despite these setbacks, Nike’s competitive strengths and its new Triple Double strategy could revitalize growth.
Finsum: Technology is also a place to consider large cap exposure, and the small cap run could mean it’s a great buy for larger cap stocks currently.