Reckoner Launches Novel CLO ETFs That Reinvest Loan Dividends

Reckoner Capital Management is launching a series of collateralized loan obligation ETFs that will automatically reinvest loan dividends, a novel feature that will allow investors to control when they collect distributions and pay taxes.

The four new actively managed ETFs join Reckoner’s two other ETFs, which offer investors exposure to CLO securities with a variety of credit ratings, according to a statement. CLOs are bundles of leveraged loans packaged into bonds of varying size and risk.