SEC Debates Listing BondBloxx Private Credit Shares on Exchange
Published Date: 11/17/2025
Notice
Summary
The SEC is deciding whether to approve or reject a plan to let the Cboe BZX Exchange list and trade shares of the BondBloxx Private Credit Trust. This affects investors who want to buy or sell these new trust shares on the exchange. The decision will be made by November 10, 2025, and could open up new investment options with potential money moves.
Analyzed Economic Effects
7 provisions identified: 3 benefits, 3 costs, 1 mixed.
Trust Allocation and Yield Targets
The Trust intends to hold about 20% of its portfolio in cash and cash equivalents (a "Liquidity Sleeve") and about 80% in Private Credit Assets. The Exchange states the Private Credit Assets are underwritten to pay a weighted average of 8% of total Trust assets under management (AUM) per month or 10% of the private credit AUM per month, with underwritten yields currently 10% and typical origination duration limits of up to 3 years (target initial portfolio duration less than 1 year).
Redemption Suspension and Discount Risk
If cash and financing options are insufficient to meet redemptions, the Trust may suspend redemptions until it accumulates enough cash, which the Advisor does not expect to last longer than approximately 2.5 months. In such a suspension, Shares on the secondary market may trade at a deep discount.
New Exchange-Traded Trust Shares
If approved, the Cboe BZX Exchange would list and trade shares of the BondBloxx Private Credit Trust under BZX Rule 14.11(f). The Trust will not trade on the Exchange until its amended registration statement on Form S-1 is effective.
Valuation, NAV, and Intraday Pricing
The Trust's net asset value (NAV) will be calculated once each business day, generally at 4:00 p.m. ET, and an Intraday Indicative Value (IIV) will be updated every 15 seconds during regular trading hours (9:30 a.m. to 4:00 p.m. ET). The Trust will publish daily NAV and holdings on the Advisor's website.
Model-Based Valuation of Private Loans
Certain private credit assets the Trust may hold (e.g., whole loans and asset-backed securities) may lack market quotations and will be fair valued using a discounted cash flow (DCF) model with inputs from an independent third-party pricing service; the Exchange notes the calculated NAV may differ from actual realizable value.
Limited Market Liquidity for Underlying Assets
The Exchange states there is limited sell-side liquidity in the market for Private Credit Assets. The Advisor proposes liquidity tools (cash sleeve, asset sales, lines of credit), but the Exchange notes these options may come at a cost or may not be available depending on market conditions.
Trust Structure Outside 1940 Act
The Exchange states the Trust intends to operate so that it falls outside the definition of an "investment company" under the Investment Company Act of 1940. The Exchange notes this intention in describing the Trust's structure.
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