How to Capture High Yields With CLO ETFs

John Kim, CEO of Panagram, is intimately familiar with CLOs, or collateralized loan obligations. He co-manages the portfolios for the Panagram BBB-B CLO ETF (CLOZ) and the Panagram AAA CLO ETF (CLOX), two flavors of CLO ETFs.

In this episode of Talk ETFs, Kim sits down with etf.com senior analyst Sumit Roy to discuss CLOs: what they are, how they work and who should invest in them.

CLO might sound like a scary word to some investors. These securitized products share some similarities with CDOs—the notorious mortgage-related securities that got banks into trouble during the financial crisis—but they’re not the same thing.

Rather, CLOs are loans (usually bank loans) that are packaged into investment products and sold to investors. The CLOs are split into tranches with varying levels of risk.

Learn more about these unique securities and how they work with CLO ETFs.

John Kim is the Chief Executive Officer & Chief Investment Officer at Panagram after previously running the structured products group at Eldridge. Prior to joining Eldridge, John was a managing director at Natixis, where he focused on structured financings for a variety of asset managers and hedge funds. Previously, he was head of CLO structuring at Deutsche Bank. He holds an M.B.A. from New York University’s Stern School of Business and a B.A. in Philosophy from Yale.