The State Street Short Duration IG Public & Private Credit ETF (PRSD) is an actively managed short-term bond fund that combines investment-grade public and private credit
State Street Investment Management, the asset management business of State Street Corporation , announced the launch of the State Street Short Duration IG Public & Private Credit ETF (PRSD). The actively managed short-term core bond solution primarily invests in investment grade debt securities through both public and private credit instruments, with the goal of maximizing risk-adjusted returns while delivering current income.
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Short-term core bond strategies are often used to generate high-quality income above cash markets, while mitigating the volatility seen in intermediate- and long-duration bond strategies. Unlike many short-term funds that rely on below-investment grade or emerging market exposures, PRSD seeks to invest at least 80% of its portfolio in investment-grade credit instruments.
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“Private credit has been one of the fastest-growing segments of the market in recent years, but historically underutilized in portfolios,” said Anna Paglia, Chief Business Officer at State Street Investment Management. “That changed earlier this year with the launch of PRIV – the SPDR SSGA IG Public & Private Credit ETF – which brought together investment-grade public and private credit exposure. Now, PRSD builds on that momentum, offering a short-term bond strategy that expands investor choice in the convergence of public and private markets.”
Managed by the State Street Investment Management Active Fixed Income Team, PRSD leverages a risk-aware, top-down macroeconomic view paired with bottom-up security selection. The team actively tilts the portfolio toward attractive sectors and issuers while targeting a duration between one and three years to help manage interest rate risk.
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“PRIV and now PRSD give investors new tools to diversify potential alpha and income sources in bond portfolios,” added Paglia. “We’re proud to be at the forefront of strategies bridging public and private markets.”
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