LONZ: The Reward Is Not Commensurate With The Risk (Rating Downgrade)

Downgrade LONZ to 'Sell' as the current 6.11% yield is insufficient for single-B risk in today's macro environment. Fund's low historical drawdown (-4%) may not hold in a recession; expect up to -10% downside in economic contraction. High expense ratio and floating rate sensitivity mean yields will drop further when the Fed cuts rates, worsening risk/reward.

Seeking Alpha • May 24, 2025

LONZ: Lower Fed Funds Make This Name A Hold (Rating Downgrade)

We are downgrading the PIMCO Senior Loan Active Exchange-Traded Fund to 'Hold' due to ongoing monetary easing and decreasing yields. The Fed's rate cuts have significantly lowered the yield curve, impacting LONZ's dividend yield, which is set to decline further. The Fund's overweight position in single-B credits, combined with historically low credit spreads, presents heightened risk in a potential recessionary scenario.

Seeking Alpha • Nov 22, 2024

LONZ: A Throughout-The-Cycle Asset

The PIMCO Senior Loan Active ETF offers prudent exposure with low price risk and high-income attributes. LONZ's near-zero effective duration and diversified corporate bank loans portfolio mitigate interest rate sensitivity, which I deem beneficial in today's uncertain economic environment. Despite investing in non-investment-grade loans, LONZ's position in the debt waterfall structure, compelling forward dividend yield, and potential for enhanced net income translate into play into a favorable trajectory.

Seeking Alpha • Sep 18, 2024

LONZ: High Yield From Leveraged Loans

The LONZ ETF is an actively managed portfolio of leveraged loans. Adjusted for leverage, LONZ's performance appears identical to a passive leveraged loan ETF. With a looming economic slowdown, investors may want to consider higher credit-quality investments like the JAAA ETF.

Seeking Alpha • Aug 30, 2024

Business of Bonds: Senior Loan ETFs Take the Spotlight

The Federal Reserve continues to hold fast to its highly data-driven, wait-and-see approach on rate policy. Last week's FOMC meeting further bolstered the market's belief in a lone rate-cut scenario, and senior loan ETFs have gained traction as elevated rate expectations spill over into the second half of the year.

ETF Trends • Jun 20, 2024

LONZ: Under The Radar Fund From PIMCO, 7% Yield

This article explores the PIMCO Senior Loan Active Exchange-Traded Fund ETF, a fixed income fund launched by PIMCO in 2022.

Seeking Alpha • Apr 20, 2024

Recapping the 2024 Fixed Income Symposium

A changing interest rate narrative prompted many advisors and investors to reevaluate their bond exposures this month. Asset managers stepped in to offer their perspectives on the changing market dynamics and where the risks and opportunities lie in the 2024 Fixed Income Symposium hosted by VettaFi.

ETF Trends • Apr 19, 2024

Looking to Loan ETFs

Fixed income ETFs gathered $51 billion of new money in the first quarter. This represented 26% of the industry's net inflows.

ETF Trends • Apr 8, 2024

VettaFi Voices On: Investments for a (Not so) Scary Market

Hello, VettaFi Voices! The Wall Street Journal mentioned today that the 10-year Treasury yield is the highest it's been since 2007 as we head into another earnings season.

ETF Trends • Oct 13, 2023

VettaFi Voices On: The State of Fixed Income

With the Fixed Income Symposium taking place on Monday, July 24, the VettaFi Voices gathered at the water cooler to discuss the current state of fixed income markets.

ETF Trends • Jul 21, 2023