Pgim Aaa Clo Etf (PAAA)

PGIM AAA CLO ETF (PAAA) is an actively managed exchange-traded fund from PGIM Investments that invests primarily in AAA-rated tranches of collateralized loan obligations (CLOs).

CLOs are securitized pools of senior secured corporate loans, typically leveraged loans to below-investment-grade borrowers, divided into tranches with different priority in receiving cash flows. The AAA tranches sit at the top of the payment structure and are protected by the more junior tranches beneath them. Because CLO debt pays floating rates, the fund's income tends to adjust with short-term interest rates, and its sensitivity to interest-rate changes is low.

PGIM's fixed income team selects individual CLO securities and managers based on credit analysis. PGIM is the global asset management business of Prudential Financial, and PAAA launched in 2023.