JAAA: Upgrading To A Hold Amidst Lower Risk

I upgrade the Janus Henderson AAA CLO ETF (JAAA) from Sell to Hold as risk factors have moderated since my original rating. JAAA marginally underperformed peers since June but outperformed over the past 30 days, with 43 bps of its 51-bps total return realized recently. Credit spreads, previously a concern due to heavy AI-related debt issuance, appear to have peaked, reducing the risk of further underperformance.