Reckoner Capital Management Expands Alternative Credit Suite with Launch of BBB-B CLO ETF
Actively managed ETF offers investors access to BBB- and BB-rated CLO bonds in easily accessible format
NEW YORK, Oct. 22, 2025 (GLOBE NEWSWIRE) -- Reckoner Capital Management (“Reckoner”), a global asset management firm with specialized expertise in alternative credit, today announced the launch of the Reckoner BBB-B CLO ETF (NYSE: RCLO).The actively managed exchange-traded fund is designed to generate current income for investors while providing the capital preservation of BBB- and BB-rated CLOs, which have outperformed similarly rated corporate bonds over the past decade.
“We continue to see strong demand in the CLO ETF market from investors who are seeking portfolio diversification and attractive yields with low correlation to traditional fixed income classes,” said Reckoner Co-Founder and CEO John Kim. “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.1,2 We expect to see more investor interest in these mezzanine tranches as the market continues to develop.”
RCLO invests primarily in BBB- and BB‐rated CLO debt – tranches that have historically offered investors a compelling combination of higher yield, lower price volatility, and comparable liquidity relative to similarly rated credit assets. The Fund’s competitive edge is Reckoner’s deep expertise in the alternative credit space, coupled with the team’s longstanding relationships across the industry’s top credit managers, issuers, banks, and capital markets professionals, all of which contribute to the quality of the CLO bonds in its portfolio.
Reckoner’s proven management team draws upon its decade of working together in the alternative credit space to access attractive bonds. The team employs a rigorous data-driven approach, selecting bonds based on the structure of an individual CLO and its underlying collateral, its trading frequency in the secondary market and overall cash flow, and the proven investment skill and process of its managers.
"Our goal is to improve access to alternative assets for a broader investor base, including retail investors, who have traditionally had limited access to professionally managed alternative credit investments,” said Richard Hoge, managing director at Reckoner. “We are committed to delivering risk-adjusted investment solutions and we are confident in the demand for this differentiated product in the marketplace.”
The launch of RCLO follows the introduction of Reckoner’s RAAA – the first-ever yield enhanced AAA CLO ETF – and marks an expansion of the firm’s ETF offerings that make alternative investments more accessible to investors.
To learn more about RCLO, please visit https://reckoner.com/rclo.
About Reckoner Capital Management
Reckoner Capital Management is a global asset management firm with specialized expertise in alternative credit. We are dedicated to delivering superior investment performance to institutional and retail clients by creating bespoke, innovative solutions and products that are directly aligned with their objectives. Leveraging our vast experience, expertise, and relationships, we bring highly differentiated alternative credit investments to Wall Street and Main Street, which has traditionally had limited access to this asset class. We are employee-owned and partnered with RedBird Capital Partners, a $12 billion private equity firm.
Important Disclosures
Past performance is no guarantee of future results. Diversification cannot assure a profit or protect against loss in a down market.
An investor should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. A prospectus and a summary prospectus which contains this and other information about the fund may be obtained by visiting www.reckoner.com/rclo. The prospectus and the summary prospectus should be read carefully before investing.
Collateralized Loan Obligations (“CLOs”) are structured products that issue different tranches, with varying degrees of risk, which are backed by an underlying portfolio consisting primarily of below investment grade corporate loans. Investments in CLOs presents risks similar to those of other credit investments, including interest rate risk, credit risk, liquidity risk, prepayment risk, and the risk of defaults of the underlying assets.
Unlike other ETFs, RCLO expects to affect most of its creations and redemptions primarily for cash, rather than in-kind securities. Cash purchases and sales may cause RCLO to incur portfolio transaction fees, gains or losses on the sales, or charges or delays in investing the cash that it would otherwise not incur if a purchase or sale was made on an in-kind basis. RCLO’s investment in debt securities may subject it to liquidity risk, interest rate risk, floating-rate obligations risk, call risk, and extension risk.
RCLO is a recently organized investment company with no operating history. As with all ETFs, shares of RCLO may be bought and sold in the secondary market at market prices (not NAV) and are not individually redeemed from RCLO.
Investments involve risk including the risk of principal loss. An actively-managed fund may not meet its investment objective based on the Adviser’s success or failure to implement investment strategies for the Fund.
As a non-diversified fund, the Fund may invest a larger portion of its assets in the securities of one or a few issuers than a diversified fund. An investment in the Fund could fluctuate in value more than an investment in a diversified fund.
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1 S&P Global, “CLO Spotlight: Thirty Years Strong: U.S. CLO Defaults as of June 30, 2025,” 8/14/2025; S&P Global. CLO 1.0 refers to S&P-rated CLOs issued from 1994 through year-end 2009. CLO 2.0 refers to S&P-rated CLOs issued from 2010 through third quarter 2024. U.S. Corporate refers to average cumulative 15-year default rates for S&P-rated corporate issuers from 1981 through 2023. The terms “CLO 1.0” and “CLO 2.0” distinguish between CLO bonds issued prior to & during the Global Financial Crisis (“GFC”) and those issued after the GFC, respectively. CLO bonds issued during the CLO 2.0 time period are generally subject to more stringent structural requirements.
2 S&P Global, “Default, Transition, and Recovery: 2024 Annual Global Corporate Default And Rating Transition Study,” 3/27/2025. Past performance is no guarantee of future results. Refer to end Important Disclosures for further information.
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