Sector developments and company hires

CLO ETF prepped
Janus Henderson Investors has filed a preliminary registration statement with the US SEC in connection with the Janus Henderson AAA CLO ETF (JAAA), which is expected to launch on 22 October and will be offered to US investors. The fund will be managed by portfolio managers John Kerschner and Nick Childs, while Jessica Shill will serve as assistant portfolio manager. The new actively managed exchange-traded fund focused on triple-A rated CLO bonds is anticipated to be the first of its kind. The investment objective of the fund will be to seek capital preservation and current income by delivering floating-rate exposure to high quality senior CLO tranches.

‘Green’ stamp for single-family MBS
Fannie Mae’s single-family green MBS programme has received a ‘Light Green Second Opinion’ from CICERO Shades of Green, a global provider of green ratings for bonds. CICERO Second Opinions are independent, research-based evaluations of green bond investment frameworks to determine their environmental robustness and offer investors better insight into the environmental quality of these bonds. Fannie Mae has issued over US$40m in single-family green MBS since the first bond was launched on 22 April to commemorate the 50^th anniversary of Earth Day. The transactions include only mortgage loans backed by newly constructed single-family residential homes with ENERGY STAR certifications that meet or exceed the national programme requirements for ENERGY STAR Certified Homes, which are at least 10% more energy efficient than typical single-family homes built to code. Future single-family green MBS issuances may include other energy-efficient new construction standards that meet or exceed those of ENERGY STAR Certified Homes Version 3.0.

TALF 2.0 extended
The US Fed has extended its TALF operations (along with its other lending facilities that were scheduled to expire by 30 September) to 31 December. Across the first three TALF subscriptions, Wells Fargo CRE research analysts note that CMBS has accounted for 35.7% of total collateral, trailing only small business ABS (48.2%). According to the list of TALF-eligible CUSIPs released by the Fed, investors appear to have a preference for CMBS securities with a longer WAL. Of the 57 CUSIPs accepted in three operations (including duplicates), 23 were issued since 2018 and 33% have WALs exceeding seven years. From the 2015 vintage, 16 CUSIPs have been accepted.