State Street Investment Management announced the launch of the State Street® IG Public & Private ABS ETF (PRAB) on March 11, 2026, adding a new investment‑grade asset‑backed securities product to its public and private credit suite.
The PRAB ETF seeks exposure to investment‑grade asset‑backed securities, including public and private ABS, collateralized loan obligations, and residential and commercial mortgage‑backed securities. State Street partners with Apollo Global Securities, LLC to source private ABS, giving the fund access to a broader range of credit assets that are typically less liquid for retail investors.
The launch builds on the success of State Street’s existing public and private credit ETFs. The State Street® IG Public & Private Credit ETF (PRIV) and the State Street® Short Duration IG Public & Private Credit ETF (PRSD) were introduced in 2025 and together held approximately $980 million in assets as of February 28, 2026. PRAB is designed to fill a gap in traditional benchmarks such as the Bloomberg U.S. Aggregate Bond Index, which historically underrepresents ABS exposure.
Investor demand for higher‑rated income strategies has been rising, and ABS remains underrepresented in many portfolios. Anna Paglia, Chief Business Officer of State Street Investment Management, said, “While the global asset‑backed finance market exceeds $20 trillion, ABS has long been underrepresented in investor portfolios. 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.”
By leveraging its ETF expertise and the Apollo partnership, State Street positions itself to capture a share of the growing private credit market. PRAB complements the PRIV and PRSD ETFs, creating a comprehensive public‑and‑private credit platform that can meet a range of income‑seeking investor needs.
The new ETF adds diversification and potential higher yields relative to corporate bonds, aligning with State Street’s broader strategy to expand public and private credit solutions. It also signals the firm’s continued focus on innovation in the ETF space, following its historic launch of the SPDR S&P 500 Trust ETF in 1993.
Overall, the PRAB launch demonstrates State Street’s commitment to meeting investor demand for income‑oriented, higher‑rated strategies while broadening exposure to the underrepresented ABS market.
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