Recently, it was announced that Fair Oaks Capital had received approval to launch Europe’s first CLO ETF. The Fair Oaks AAA CLO UCITS (FAAA) will list on the Deutsche Boerse on 10 September and the firm said it plans to list FAAA on the London Stock Exchange (LSE) shortly after.
The ETF offers investors a liquid exposure to a diverse pool of AAA-rated floating-rate assets, which have a superb track record of no defaults since the first AAA-rated CLO was issued over 25-years ago.
This announcement follows the hugely successful launch of US CLO ETFs in recent years which have grown into meaningful market participants, attracting assets of more than USD15bn.
