State Street Investment Management announced the launch of the State Street® IG Public & Private ABS ETF (PRAB), an actively managed exchange-traded fund designed to expand investor access to a rapidly growing, higher-quality segment of the global credit markets.
PRAB primarily allocates to investment-grade asset-backed securities (ABS), both public and private, including collateralized loan obligations (CLOs) as well as residential and commercial mortgage-backed securities. The fund’s innovative exposure to both public and private ABS addresses increasing investor demand for higher rated income-oriented strategies. The fund’s private ABS allocation may include, but is not limited to, securities sourced by Apollo Global Securities, LLC.
By allocating across a wide range of investment-grade ABS, including ABS sectors that historically have had limited or no representation in the Bloomberg US Aggregate Bond Index, PRAB may serve as an effective complement to core bond allocations and help diversify sources of bond portfolio income.
“While the global asset-backed finance market exceeds $20 trillion,1 ABS has long been underrepresented in investor portfolios,” said Anna Paglia, Chief Business Officer of State Street Investment Management. “With PRAB, we’re expanding investor access to a higher quality yet largely untapped part of the global credit market that offers diverse potential income streams and the potential for higher yields compared to corporate bonds with a similar risk profile.”
Managed by State Street Investment Management’s Active Fixed Income Team, PRAB takes a risk-aware, top-down approach combined with bottom-up security selection designed to overweight the most attractive sectors and issuers.
PRAB builds on State Street Investment Management’s growing suite of innovative public and private credit solutions, following the launches of the State Street® IG Public & Private Credit ETF (PRIV) and State Street® Short Duration IG Public & Private Credit ETF (PRSD) in 2025. The suite has attracted approximately $980 million in assets as of February 28, 2026.
Source: State Street Investment Management
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