CLOs EXPLAINED: JAAA, JBBB, CLOZ, and EIC Reviewed

Are CLOs, collateralized loan obligations, a high-income cheat code where you can get 7 plus percent yields from AAA rated bonds with almost no interest rate risk? Or are they still filled with the same kinds of hidden risks that gave us a wave of defaults on AAA bonds in 2008?

If you want to learn more about investing from a CFA Charterholder currently in the industry, join our

CLOs EXPLAINED: JAAA, JBBB, CLOZ, and EIC Reviewed

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[FundamentalsofFinance]

If you want to learn more about investing from a CFA Charterholder currently in the industry, join our

[Jon-sq]

A clear explanation of CLO structures. Thank you very much. If there is a large market downturn and EIC crashes, it might be a bottom feeder's dream. Please, though I'd like to see something on preferred stock ETFs like PFFA. I am comparing them with these CLO products as an income investor and I'm sure many others are doing the same.

[khanbus]

Great presentation! Could we cover PFFA (Virtus InfraCap U.S. Preferred Stock ETF) at some point and compare it to PFF (iShares Preferred and Income Securities ETF)?

[gregnyberg]

EIC is tame compared to its brother ECC.

[barandek]

love the explanation on EIC, I have this inside my portfolio and now considering selling, thanks to you! I dont want to have that high risk/reward position. I will stay with JAAA. If you were to choose one, which would you prefer JAAA or PULS?

[Antandthegrasshopper]

Great timing, just bought a good chunk of JAAA

[ophirmayer]

Sorry but EIC's history shows it's a lot more resilient than you suggest it is. It's done very well in the past 5 years

[clutchcarabelli]

Hey there March here how y'all doing 👋😁

[muffnxman]

Most of my portfolio is in the S&p500 as are most people, but also 15% of my total is in CLOZ for the past rolling year

[fredrickthegreat]

EIC is not a risky as ECC, but then again, the reward is greater.

[socratesXLIX]

Great explanation of CLO's. I own JAAA, PAAA, CLOA, CLOX, CLOI, JBBB, CLOZ, and OXLC. What do you think of the Ultra-Short Term Bond ETF BUCK as compared to PULS?

[yoda]

Sounds like it's better to just invest in JEPI and IVVW

[timlane]

So glad I found your channel. Always great analysis!

[SandstoneCapitalLLC]

Great Video!
Seems like your prediction has come to fruition with JAAA and JBBB. The market as a whole is now in correction territory as of today (March 13, 2025) these ETFs closed down at $50.48 and at $48.34 respectively. Additionally, Chairman Powell has hinted at a possible rate decrease in the future which is opportune for an even further price decrease.

[LesAdamson]

Hi, am living in Thailand and have a IBKR brokerage account that has 15% tax taken of my dividends. Can I put a tax refund into the american tax system?
I'm a New Zealand citizen.
Also what do you think of AIPI ETF
I like your content and attitude, all the best, regards Les

[michaelgonda]

Regulations that some people want to remove.... which is crazy. It's like we don't have any memory past last quarter or something. I had money in the market in 2008, it was really REALLY ugly.

[AhmedSalah-gb]

Please tell me what affects the JAAA price not the dividend ratio .

[ivanpinkas]

Great info... Thanks. Thoughts on good Municipal Bond ETF'S???

[CommonCarProblems]

What about CLOI? Is that basically the same as JAAA?

[KCInferno]

For CFA cardholder you don’t know the difference between senior secure loan and bond. You didn’t cover recovery rate. Your total returns chart on EIC does not include the 5% special drip. I noticed you did not cover the 5% special drip. Again a CFA cardholder should have known this and included it in their analysis. You do this all the time exclude anything that does not fit into your narrative. Shame you think you can take advantage of people.