Reckoner BBB-B CLO Annual ETF (RCLY)

The Reckoner BBB-B CLO Annual ETF (RCLY) is an actively managed exchange-traded fund from Reckoner Capital Management that invests primarily in mezzanine, BBB- through B-rated, debt tranches of collateralized loan obligations (CLOs). CLOs are securitized pools of senior secured loans made to companies, divided into tranches with different priorities of repayment.

The fund uses Reckoner's security selection process and techniques intended to enhance yield within its targeted credit range. CLO debt generally pays floating-rate coupons, so income tends to adjust as short-term interest rates change. This version is structured to pay distributions on an annual schedule. Lower-rated CLO tranches absorb losses earlier than senior tranches when underlying loans default.