02:50 PM EDT, 10/01/2024 (MT Newswires) -- On September 18, 2024, BMO Research noted Tuesday, Corton Capital launched Canada's first CLO ETF (RAAA). According to BMO, they provide Canadian ETF investors "easy access to a market that was previously only available to large institutional investors".

For income-focused investors, BMO said, the combination of high credit ratings and floating rate yields make AAA-rated CLO tranches "great hedging tools against monetary uncertainties".

BMO added: with the total AUM of top U.S. CLO ETFs having increased by more than seven times since last year, Canadian investors can now also participate in this emergent trend and use CLO ETFs as an alternate cash management tool with yield-enhancing benefits.

Elsewhere, National Bank of Canada in an 'ETF Industry Note' on Tuesday noted that the Office of the Superintendent of Financial Institutions (OSFI) is proposing changes to its current LICAT (Life Insurance Capital Adequacy Test) guidelines.

If enacted, National said, the proposals might promote the adoption of ETFs in the general accounts of Canadian life insurers.

National added regulatory 'risk weight' might fall significantly for certain ETFs after "look-through treatment".

According to National, fixed income and foreign equity are the two ETF categories that might benefit the most from this proposed rule change

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