Reckoner Capital Management introduced its newest ETF, the Reckoner BBB-B CLO ETF (NYSE:RCLO), launched on Wednesday, with more than $27 million in assets under management. The actively managed CLO ETF aims to produce income while maintaining capital, investing a substantial portion of its assets in Collateralized Loan Obligation (CLO) bonds rated BBB- and BB.
John Kim, Reckoner co-founder and CEO, explained the launch timing amid high investor demand for CLO-targeted ETFs, especially from those seeking higher yields and diversification away from conventional fixed-income products. "While most inflows have been directed to the AAA space, BBB- and BB-rated CLOs offer a higher yield than AAA CLOs while still outperforming other credit assets with similar ratings in terms of loss experience. We expect to see more investor interest in these mezzanine tranches as the market continues to develop," he said.
