FS KKR: 12% Yield Is Attractive, And It Still Trades At A Discount Heading Into Earnings
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FS KKR Capital Corp (FSK) is considered undervalued, trading at a discount to its Net Asset Value (NAV). It offers a strong Net Investment Income (NII) and a high distribution yield, making it an attractive investment. FSK's portfolio is well-diversified, with a significant portion in senior secured investments and floating rate debt, providing protection against interest rate changes. The company is well-positioned to benefit from expected market conditions in 2025, with opportunities for increased originations and improved credit metrics.
February 07, 2025 | 6:15 pm
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FS KKR Capital Corp is undervalued, trading at a discount to NAV, with strong NII and a high distribution yield. Its diversified portfolio and floating rate debt offer protection against interest rate changes, making it an attractive investment.
FSK is trading at a discount to its NAV, which suggests potential for price appreciation. The high yield and strong NII make it attractive to income-focused investors. The diversified portfolio and floating rate debt provide stability against interest rate changes, enhancing its investment appeal.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100