New ETF Provides U.S. Investors Access to Covered Bonds (COBO)
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High credit quality covered bonds are different from typical U.S. corporate debt in that, in the event of a default, covered bondholders not only have a senior unsecured claim against the issuer but also a preferential claim to a segregated, actively maintained "cover pool" of assets. The dual coverage from the issuer and the cover pool typically makes covered bonds a high credit quality investment.
With this in mind, ProShares announced Wednesday the launch of ProShares USD Covered Bond (NYSE: COBO). This new ETF is the only corporate bond fund, mutual fund, or ETF in the U.S. with substantially all of its assets rated AAA.2
"Many investors are interested in high credit quality bonds, but the supply of AAA-rated corporate debt in the U.S. is very limited," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC.
"COBO, a first-of-its-kind ETF, fills the gap by accessing the highest-rated segment of the $3 trillion covered bond market."
COBO listed on the NYSE Arca May 23rd.
With this in mind, ProShares announced Wednesday the launch of ProShares USD Covered Bond (NYSE: COBO). This new ETF is the only corporate bond fund, mutual fund, or ETF in the U.S. with substantially all of its assets rated AAA.2
"Many investors are interested in high credit quality bonds, but the supply of AAA-rated corporate debt in the U.S. is very limited," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC.
"COBO, a first-of-its-kind ETF, fills the gap by accessing the highest-rated segment of the $3 trillion covered bond market."
COBO listed on the NYSE Arca May 23rd.
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