CHICAGO and MILWAUKEE and NEW YORK, Dec. 06, 2022 (GLOBE NEWSWIRE) -- Tidal Financial Group (“Tidal”), a leading ETF investment and technology platform, announced the listing of the Senior Secured Credit Opportunities ETF (NYSE: SECD) an actively managed secured credit fund managed by Gateway Credit Partners (“Gateway”). The fund seeks to generate consistent income and preserve capital by investing primarily in a combination of first lien senior secured loans and secured bonds to businesses operating in North America.
Gateway is a value-based credit manager focused on capturing both fundamental and technical inefficiencies in the leveraged loan and high yield bond market. Gateway focuses on generating true alpha which they define as yield per turn of leverage significantly greater than their representative indices. Gateway believes a “size arbitrage” exists in credit markets as rating agency models can over-emphasize size (revenues and market capitalization) vs credit fundamentals. Gateway’s fundamental investment process focuses on companies exhibiting low leverage, the ability to generate true free cash flow, excess liquidity and a business model that can withstand significant revenue reductions in downside scenarios.
Gavin Filmore COO of Tidal said, “We are excited to partner with the Gateway team who have a long-term track record of active management in the loan and bond markets. We believe the corporate credit markets offer investors tremendous opportunities going forward but should be actively managed given the challenging economic environment.”
Tim Gramatovich founder of Gateway said, “We are thrilled to partner with Tidal on bringing this ETF to market. After almost 13 years of a 0% interest rate policy, fixed income investors have an environment where meaningful yields now exist. At over $3 trillion, the US loan and high yield bond markets offer investors a tremendous opportunity to generate yield. We believe SECD fills a much-needed gap in the actively managed corporate credit space particularly as it relates to the loan market. The loan market has been the purview of CLOs and index products with very little in the way of true fundamental credit work. We view the secondary loan market as very large and inefficient and ripe for generating both significant income and potential capital gains for investors. Key to success here is avoiding what we call “stretch” 1st liens or massively over-levered loans further challenged with fictional accounting metrics known as “pro-forma further adjusted EBITDA.”
More information can be found at SECDETF.com
About Tidal Financial Group
Formed by ETF industry pioneers and thought leaders, Tidal Financial Group sets out to revolutionize the way ETFs have historically been developed, launched, marketed, and sold. With a focus on growing AUM, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. Tidal is an advocate for ETF innovation. The firm is on a mission to provide issuers with the intelligence and tools needed to efficiently and to effectively launch ETFs and to optimize growth potential in a highly competitive space. For more information, visit https://www.tidalfinancialgroup.com/.
About Gateway Credit Partners
Gateway is a corporate credit investor founded by Tim Gramatovich a Drexel Burnham alumni and 37-year veteran of the leveraged finance markets. The investment team has run leveraged loans and high yield bonds in numerous structures including structured credit vehicles, LPs and the first actively managed high yield bond ETF launched back in 2010. Gateway is registered with the SEC under Toroso Investment Advisors a wholly owned subsidiary of Tidal Financial Group.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (866) 953 4590 or visit our website at www.secdetfs.com. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk; Principal loss is possible. Shares may trade at Prices Other Than NAV. As with all ETF’s Shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of Shares will approximate the Fund’s NAV, there may be times when the market price of Shares is more than the Nav intraday (premium) or less than the NAV intraday (discount) due to supply and demand of Shares or during periods of market volatility.
Fixed income securities are subject to interest rate, inflation, credit, and default risk. As interest rates rise, bond prices usually fall, and vice versa. The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments, or its credit strength weakens. Investing in derivatives entails specific risks relating to liquidity, leverage and credit and may reduce returns and/o r increase volatility.
The Senior Secured Credit Opportunities ETF is distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with Gateway Credit Partners or Tidal Financial Group.
EBITDA is earnings before interest, taxes, depreciation, and amortization.
Free cash flow is the cash a company generates after taking into consideration cash outflows that support its operations and maintain its capital assets.
