Pyxis Capital launches Pyxis iBoxx Senior Loan ETF

Nov 11th, 2012 | By | Category: Alternatives / Multi-Asset

Pyxis Capital, a US-based investment adviser, has announced the launch of the Pyxis iBoxx Senior Loan ETF (SNLN), a low-cost exchange-traded fund that provides investors with access to bank loan investments. The fund has been listed on the New York Stock Exchange.

Pyxis Capital launches Pyxis iBoxx Senior Loan ETF

The Pyxis iBoxx Senior Loan ETF (SNLN) provides investors with access to USD-denominated bank loan investments.

The Pyxis iBoxx Senior Loan ETF is the only ETF to track the Markit iBoxx USD Liquid Leveraged Loan Index, a measure of the broad loan market comprised of 100 of the most liquid, tradable leveraged loans as identified by Markit’s Loans Liquidity service.

“This is an exciting expansion of our family of iBoxx indices,” said Armins Rusis, Managing Director and Co-Head of Information at Markit.

Mr Rusis added: “The iBoxx USD Liquid Leveraged Loan Index focuses on the most actively-traded segment of the market and is the only benchmark that incorporates up-to-date loan reference and transaction information from Markit Loan Data, and high-quality valuations from Markit Loan Pricing, making it uniquely-suited for ETF construction. The fund’s floating rate design typically re-prices rates every 90 days, reducing duration risk and protecting against inflation risk.”

“In this time of extremely low interest rates, we believe the Pyxis iBoxx Senior Loan ETF is well-positioned to serve investors who are looking for income, but don’t want to take on too much risk,” said Pyxis President Brad Ross. “Senior secured bank loans are a defensive asset class with the potential to pay a higher yield.”

The fund builds on the strengths of Highland Capital, one of the largest global alternative credit managers.  Pyxis, which spun off from Highland earlier this year, tapped Highland’s expertise in the development of the Pyxis iBoxx Senior Loan ETF. “We believe investors will benefit from the institutional expertise and heft that Highland holds in the bank loan and credit universe,” said Mr. Ross.

The fund has a net expense ratio of 0.55%.

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