First Leveraged CLO ETF Tests Retail Crowd’s Appetite for Risk

Reckoner Capital Management is testing investors’ hunger for a new category of risky bets with an exchange-traded fund that uses leverage to juice returns on collateralized loan obligations.

The Reckoner Leveraged AAA CLO ETF (ticker: RAAA) is the first such fund to invest in a variety of top-rated CLO bonds while leveraging up to 50% of that exposure, according to a statement.