KKRT: 6.875% Subordinated Note IPO From KKR & Co.

2025-06-02 16:19:05 ET

Summary

• KKRT offers a 6.875% nominal yield, a BBB+ rating, and is fairly priced relative to KKR's senior debt and sector peers.
• KKR has outperformed both the S&P 500 and asset manager peers over the past decade, but its debt interest coverage requires monitoring.
• ETF inclusion, particularly in PFF, could drive short-term price appreciation for KKRT, creating a technical buying opportunity.
• I rate KKRT a 'Buy' for a quick uptick, but prefer sector issues trading below par for better long-term upside.

Co-authored by Relative Value.

Overview

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