SEC Eyes Private Credit Shares: New Playground for BondHungry Investors
Published Date: 3/20/2025
Notice
Summary
The SEC is deciding whether to approve or reject a plan by the Cboe BZX Exchange to let people buy and sell shares of the BondBloxx Private Credit Trust. This affects investors interested in private credit investments and could open up new trading options soon. The SEC is taking extra time and will make a final call by March 30, 2025.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Potential New Exchange-Traded Private Credit Shares
The SEC is deciding whether to allow Cboe BZX to list and trade shares of the BondBloxx Private Credit Trust. If approved, investors would be able to buy and sell these Trust shares on the exchange; the Commission will make a final decision by March 30, 2025.
Liquidity Limits and Redemption Risk
The Trust plans to hold about 20% of assets in cash and cash equivalents (a "Liquidity Sleeve") and about 80% in Private Credit Assets. If cash runs low, the Trust may sell assets, borrow against its portfolio, or suspend redemptions for up to approximately 2.5 months, and Shares on the secondary market could trade at deep discounts.
Daily NAV and Intraday Pricing Transparency
The Trust will calculate net asset value (NAV) once each business day (generally at 4:00 p.m. ET) and will publish portfolio holdings daily on its website. The Exchange will disseminate an Intraday Indicative Value (IIV) every 15 seconds during Regular Trading Hours (9:30 a.m. to 4:00 p.m. ET) and provide daily NAV and price/volume data on the Advisor's website.
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