May 5, 2025 (NO COMMENTS)

Record outflows from exchange-traded funds holding collateralised loan obligations (CLOs) had little impact on the underlying market during the tariff-induced volatility in April thanks to their relative size and the structure of redemptions, according to traders.

Following $26 billion of inflows over the two years through February, the largest CLO-backed ETFs saw outflows totalling $1.6 billion in March and April.

ETFs can represent a more liquid alternative than trading their underlying