Deals
KKR Sees ‘Golden’ Chance to Snap Up Risky Debt Amid Market Chaos
- Likens the opportunity to early 2020, when it spent billions
- Firm prefers high-yield debt to equities, but voices caution
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KKR & Co., the private investing giant that’s been picking through battered bond markets, said it’s favoring risky bonds over stocks after this year’s steep selloff.
High-yield spreads have widened to meet long-term averages, while stocks are still trading above historical levels, according to KKR. “Credit is trading at attractive levels and the yields are inviting,” KKR’s credit and markets team, co-headed by Chris Sheldon, wrote on Monday in a letter to investors. And in private markets, “this could be a golden vintage for junior debt.”