State Street launches new ETF investing in investment-grade private, public credit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2025
0mins
Should l Buy STT?
Source: SeekingAlpha
New ETF Launch: State Street has introduced the SPDR SSGA Apollo IG Public & Private Credit ETF, which invests in both investment-grade private and public credit, utilizing a macroeconomic approach for portfolio construction.
Market Demand: The launch responds to increasing demand for private market exposure, particularly from retail investors seeking low-cost, liquid investment options in the growing $1.6 trillion private credit market.
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Analyst Views on STT
Wall Street analysts forecast STT stock price to rise
12 Analyst Rating
7 Buy
4 Hold
1 Sell
Moderate Buy
Current: 126.310
Low
128.00
Averages
142.27
High
168.00
Current: 126.310
Low
128.00
Averages
142.27
High
168.00
About STT
State Street Corporation is a financial holding company. The Company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), provides a range of financial products and services to institutional investors. It operates through two lines of business: Investment Servicing and Investment Management. Its Investment Servicing line of business provides a range of services and market and financing solutions to institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, investment managers, foundations and endowments worldwide. Through State Street Investment Services, State Street Markets and State Street Alpha, it offers a range of solutions, including transaction management, derivatives, collateral services, and others. Investment Management line of business provides a range of investment management solutions and products through State Street Investment Management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Financial Strength Assessment: Federated's balance sheet is assessed as very strong, and while its business profile is limited, it demonstrates adequate operating performance, suggesting potential for greater business maturity in the future.
- Parent Company Support: Federated benefits from credit enhancement provided by its parent, State Street Corporation, one of the world's largest financial service organizations, which offers additional capital and financial flexibility, ensuring its competitiveness in the market.
- Business Development Outlook: AM Best expects Federated to maintain solid operating performance and operate within its business plan, indicating that its strategic alignment with State Street will further drive its long-term growth potential.
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- Performance Assessment: Although Federated's operating performance is deemed adequate, its limited business profile and appropriate enterprise risk management provide support for its ratings, demonstrating resilience in the insurance market.
- Parent Company Support: The credit ratings also reflect credit enhancement from its parent, State Street Corporation, one of the world's largest financial service organizations, which offers additional capital and financial flexibility to Federated.
- Future Expectations: AM Best anticipates that Federated will maintain solid operating performance and operate within its business plan, indicating a strong alignment of interests with State Street, with potential for further maturation and development in the future.
See More
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Outlook Revision: AM Best has revised the outlook for the federalated underwriting company to positive, indicating improved performance expectations.
Factors Influencing Change: The revision is based on various factors, including financial stability and market conditions that favor the company's growth.
See More
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- Investor Choice Considerations: While both funds exhibit similar performance, IAU's lower expense ratio may attract more cost-conscious investors, whereas GLD's larger asset base provides it with greater market recognition.
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- DXC Options Activity: DXC Technology's options volume stood at 20,355 contracts, approximately 2.0 million shares, which is 110.9% of its average daily trading volume over the past month, showcasing strong market interest in the company.
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