Centrifuge Touts AAA CLOs as Safer Alternative to US Treasuries

Centrifuge is making a strong case for the benefits of AAA CLOs (Collateralized Loan Obligations) over US Treasuries, arguing that they offer higher credit ratings, floating-rate exposure, and excess yield compared to government bonds.

AAA CLOs are linked to benchmarks like SOFR (the Secured Overnight Financing Rate), which means their coupons adjust when rates move. This reduces duration risk, making them a more attractive option for investors.

Centrifuge's Janus Henderson Anemoy AAA CLO Fund, known as JAAA, has received significant attention, including a $1 billion allocation from Sky/Grove in June 2025. The fund has now crossed hundreds of millions in total value locked.

The tokenization layer adds its own considerations, however, with smart contract risk, oracle dependencies, and the relatively untested nature of onchain settlement for complex structured products being potential concerns.