Janus Is Skeptical of Private Credit’s Push Into ETFs

Overview

Retail investors aren’t yet ready to jump on the private-credit bandwagon, according to Janus Henderson. “The skepticism [around ETFs focused on direct lending] should be real,” John Kerschner, the company’s head of US securitized products, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Spencer Cutter in the latest Credit Edge podcast. “The underlying isn’t nearly as liquid and hasn’t really been tested throughout a real dislocation credit cycle.” Kerschner and Cutter also discuss the outlook for the US economy and consumers, collateralized loan obligations, relative value in securitized credit and fund flows.