Fixed-income ETF provider BondBloxx questions private credit meltdown fears, sees space as sensible way to generate income

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BondBloxx ETFs has been making a big bet in private credit.

Even with Wall Street fears of an impending meltdown in the space, the firm’s co-founder and chief operating officer is confident private credit is a sensible way for investors to pursue income.

“What you’re seeing in the press… maybe a fund of one manager and one manager’s assets [are] being marked down, and that’s going to happen. There may be a concentration in that manager’s approach or in the loans and the companies that are in their fund,” Joanna Gallegos told CNBC’s “ETF Edge” this week.

Gallegos, who’s the former head of global ETF strategy at J.P. Morgan Asset Management, contends BondBloxx’s approach to private credit protects investors because it’s designed to give “immense diversification.”