Income Innovation From Hilton & Rate-Cut Signals From Powell
Hilton’s launch of a first-of-its-kind BDC bond ETF highlights how the firm is driving innovation in income strategies, giving advisors a new tool for client portfolios. Meanwhile, Fed Chairman Jerome Powell’s Jackson Hole speech signals a potential shift toward rate cuts amid mixed economic signals—persistent inflation, a cooling job market, and steady consumer demand.
Industry News | Macro Moves
Markets Rally—But Is It Just a Late-Summer Sizzle?
Markets surged after Powell hinted last week at a September rate cut, with the Dow hitting record highs and indexes jumping. But analysts warn this could be a fleeting, late-summer rally before volatility returns. MarketWatch
Housing’s Split Signal: Starts Climb, But Permits Slide
Housing starts rose 5.2% in July to 1.43M, while permits fell 2.8% to 1.35M—driven by a nearly 10% drop in multifamily. The gain in starts isn’t statistically significant, but the split suggests near-term construction strength, while future supply may soften, keeping pressure on affordability and inventory. U.S. Census Bureau
Alts Closer to Inclusion in Employer-Sponsored 401(k)s
President Trump signed an executive order earlier this month aimed at expanding 401(k) plan participants’ investment options to include alternative assets such as private equity, cryptocurrency, and more. The DOL subsequently rescinded a Biden-era supplemental statement cautioning against such high-risk investments. ThinkAdvisor
In Focus
Breaking Barriers in Private Credit: Inside Hilton’s BDC Bond ETF With Alex Oxenham
Private credit has long been a specialized segment of the investment world—offering high yields but locked behind complex structures, limited liquidity, and high operational barriers.
Hilton Capital Management’s CIO Alex Oxenham just changed that. The result? The Hilton BDC Corporate Bond ETF (HBDC)—the first ETF focused exclusively on bonds issued by Business Development Companies (BDCs).
Business Development Companies—or BDCs—were created by an act of Congress in 1980 to provide capital to U.S. middle-market businesses. They make hundreds of loans to small and mid-sized U.S. companies.
“BDC bonds have flown under the radar for years,” says Oxenham. “They offer compelling yields, structural safeguards, and a track record of stability through market stress. But for most investors, the access points just weren’t practical. We fixed that.”
The BDC bonds HBDC targets offer a current yield pickup of about 1.6% over Treasuries and roughly 1% above comparable investment-grade corporates—providing extra income without moving into high-yield territory.
From Concept to Index
Historically, buying individual BDC bonds meant conducting exhaustive loan-level analysis—work that few RIAs or even large institutions could take on at scale.
Oxenham’s solution was to partner with Solactive AG to build a rules-based index targeting senior, fixed-rate, unsecured BDC bonds, with strict issuer caps, liquidity screens, and credit-quality filters. The ETF structure wraps that index into a package advisors can buy and sell with daily liquidity and full transparency.
Positioned for Any Rate Cycle
To be clear, HBDC wasn’t built for one market moment—it’s designed to give scalable, transparent access to BDC bonds in any environment. Its debut, however, comes as policy rates sit at 4.25%-4.50%, consumer inflation is 2.7% headline / 3.1% core, and wholesale prices have risen beyond expectations, up 0.9% in July—a mixed backdrop that has investors seeking both income and diversification.
Why This Should Be on Your Radar
For clients seeking income, BDC bonds can deliver attractive spreads over investment-grade corporates—without venturing into high-yield territory. They also behave differently from many traditional fixed income sectors, since their performance is tied, in part, to privately negotiated middle-market loans. That means they can add a layer of diversification most portfolios don’t have today.
And investor behavior backs this up: fixed-income ETFs have already topped $200B of inflows year-to-date at the fastest pace on record, while money market fund assets remain around $7T—signaling ongoing demand for yield and liquidity.
With HBDC, RIAs can build that exposure in precise increments, rebalance on the fly, and fit it neatly into model portfolios. And while cash yields are still attractive, they reset if cuts arrive; intermediate bonds can lock in yield and may add price upside if rates fall—one reason many advisors are leaning into bond ETFs now.
Oxenham sums it up:
“We’re giving advisors a way to connect clients to private credit—minus the barriers that have kept it a long-restricted asset class.”
With Hilton’s first-mover ETF, private credit is now accessible, transparent, and ready for the portfolios that need it.
“[Fed Chairman] Powell’s key phrase, ‘With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,’ hints at a move from restrictive to a more neutral policy stance as the forward risks to employment and inflation become more balanced.”
一 Timothy Reilly, President
“The S&P’s steady climb is notable, but the real story is small caps. With the Russell 2000 stacking strong weekly gains [last week] and momentum building, the space is pacing for its best month since November 2024.”
一 Craig O’Neill, Chief Executive Officer
Drill Down
Financial advisors no longer win on first impressions—most Americans compare multiple advisors digitally before making a choice.
Traditional assumptions no longer hold一Wealthtender’s 2025 survey shows how Americans actually find and hire financial advisors. From online research to technology’s growing role, the findings reveal why digital presence is now central to growth.
With inflation trends diverging and growth signals mixed, upcoming data could set the tone for year-end.
Watch PCE, PMIs, and jobs for demand trends, the Fed’s SEP “dot plot” for additional policy clues, and LEI and GDP revisions for signs of momentum—or a possible slowdown ahead.
Indicator
Release Date
Headline/Core Personal Consumption Expenditures (PCE) Price Index
8/29/25
ISM Manufacturing PMI
9/2/25
ISM Services PMI
9/4/25
Jobs Report (Nonfarm Payroll, Labor Participation Rate, and Unemployment Rate)
9/5/25
FOMC Meeting, includes Summary of Economic Projections (SEP) release
President Nixon stunned the world by suspending the dollar’s convertibility into gold, dismantling the Bretton Woods system of fixed exchange rates. This “Nixon Shock” marked the birth of today’s fiat currency era, where currencies float freely. The move reshaped global finance, fueled currency volatility, and cemented the U.S. dollar’s dominance as the world’s reserve currency.
Bottom Line
Despite the summer season, markets remain busy—with plenty to weigh now as the outlook toward year-end takes shape.
Hilton Capital Management
Understanding the signals that shape markets is key to serving your clients effectively.
Stay informed, stay ahead, and connect with our team to enhance your investment toolkit today.
Hilton Capital Management, LLC (“HCM”) is a registered investment adviser with its principal place of business in the State of New York. For additional information about HCM, including fees and services, you can review our Form ADV Part 2A at https://adviserinfo.sec.gov/firm/summary/116357 or request a copy using the contact information herein. Please read the Form ADV carefully before you invest or send money. Past performance is no guarantee of future results. Funds are distributed by Foreside Fund Services, LLC and certain employees of HCM are registered as Registered Representatives of Foreside.
Hypha HubSpot Development ("Hypha") and Hilton Capital Management staff ("HCM") collaborated in the preparation of this newsletter. Hypha is a marketing firm engaged and compensated by HCM. HCM has reviewed and approved this for distribution. The information set forth within should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed will come to pass. Investing in the markets involves gains and losses and may not be suitable for all investors. The information set forth here should not be considered a solicitation to buy or sell any security.
This newsletter is not intended as, and does not constitute, an offer to sell any securities to any person or solicitation of any person of an offer to purchase any securities. No offer to sell (or solicitation of an offer to buy) will be or is hereby made in any jurisdiction in which such offer or solicitation would be unlawful. This newsletter is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. None of the content should be construed as specific investment advice, or replacement for investment advice from HCM, or any other investment professional.
The information is provided as of the date of delivery hereof, is condensed and is subject to change without notice. Some information may have been provided by or compiled based on information provided by third party sources. Although HCM believes the sources are reliable, it has not independently verified any such information and makes no representations or warranties as to the accuracy, timeliness or completeness of such information.
Hilton Capital Management, 1010 Franklin Avenue, Suite 300A, Garden City, NY 11530
Before investing you should carefully consider the Fund’s investment objective, risk, charges and expenses. This and other information is in the prospectus. A prospectus or summary prospectus may be obtained by visiting www.hiltonetfs.com or calling 1-833-594-4586. Please read the prospectus carefully before you invest.
Investing involves Risk, including possible loss of principal. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. There is no guarantee that the Fund’s investment strategy will be successful.
Investors buy and sell ETF shares through a brokerage account or an investment advisor. Like ordinary stocks, brokerage commissions, and/or transaction costs or service fees may apply. Please consult your broker or financial advisor for their fee schedule.
Credit Risk: Debt securities held by the Fund are subject to the risk that an issuer or related party (such as a guarantor or counterparty) may fail to meet its financial obligations. These failures can negatively impact the value of the investment and the Fund’s ability to receive expected income or principal repayments.
Fixed Income & Interest Rate Risk: Fixed income responds to economic developments particularly interest rate changes, as well as to changes in an issuer’s credit rating. Fixed Income investments typically decline in value when interest rates rise and increase in value when rates fall. Longer-duration and lower-rated securities are generally more sensitive to these changes. Interest rate movements, including those driven by central bank policy, may also impact the Fund’s income.
Index and Tracking Error Risk: As a passive fund, the Fund seeks to replicate the performance of its index. However, differences may arise due to fund expenses, trading activity, or index changes. The Fund may also hold securities not in the index or may not always be fully invested in index components.
A "BDC Bond" is a fixed-income security issued by a Business Development Company (BDC) to raise capital.
The Hilton BDC Corporate Bond ETF is distributed by Foreside Fund Services, LLC ("Foreside"). Foreside and Hilton Capital Management LCC, are not affiliated.
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