Core Viewpoint - The launch of collateralized loan obligation (CLO) ETFs occurs during a challenging period, marked by significant investor withdrawals and corporate bankruptcies, yet new products targeting lower-quality CLOs are entering the market [1][2]. Group 1: Market Context - Over $1 billion has been withdrawn from CLO ETFs in the US this month, attributed to the bankruptcies of Tricolor Holdings and First Brands Group [2]. - JPMorgan reported a loss of $170 million related to Tricolor's bankruptcy, prompting credit managers to reassess their corporate debt holdings [2]. - Recent reports of fraud related to distressed commercial mortgages have further impacted the market [2]. Group 2: New ETF Launches - Reckoner Capital Management launched the Reckoner BBB-B CLO ETF (RCLO) on October 22, focusing on lower-quality, higher-yielding CLOs [3]. - Advisors Asset Management introduced the AAM Crescent CLO ETF (CLOC), which spans various credit qualities, in response to inflation and interest-rate volatility [4]. Group 3: ETF Details - RCLO charges a fee of 0.50% and has $28 million in assets, benchmarked against the JPMorgan CLO High Quality Mezzanine Index [5]. - CLOC is positioned as the lowest-cost CLO ETF with net expenses of 0.18% and $50 million in assets, benchmarked against the JPMorgan US CLOIE IG Index [5]. - There are at least 19 other US CLO ETFs in the market, collectively representing about $37 billion in assets, with $14 billion in net flows recorded this year through September [5].