Alternative credit expert Reckoner Capital Management on July 9 introduced the Reckoner Leveraged AAA CLO ETF (NYSE:RAAA), the industry’s first ETF providing leveraged exposure to AAA-rated collateralized loan obligations (CLOs). The fund seeks to provide increased yields by matching high-quality CLO assets with moderate leverage, making it a differentiated competitor in the fast-changing CLO ETF space.“While the CLO ETF market has grown significantly as institutional and retail investors seek alternative credit investment opportunities that offer diversification, attractive yields, low default risk, and inflation protection, there is still limited differentiation among AAA CLO ETFs,” said Reckoner CEO John Kim. The fund’s distinguishing factor is its capacity to access elite CLO managers and employ modest leverage to enhance returns while prioritizing capital preservation.Also Read: Silver ETFs Just Crashed Gold’s Party— And Took The CakeAAA CLO ETF ExplainedA collateralized loan obligation (CLO) is a portfolio of corporate loans—usually from below-investment-grade corporations—pooled together. They’re then carved up into various “tranches” of risk. The AAA tranche is the most senior ...Full story available on Benzinga.com
Higher Yields Without Junk Bonds: Reckoner's New ETF Offers New Spin On CLOs
