FS KKR Capital: Truly Humbled By April's Roller Coaster Ride (Rating Downgrade)

  • Market volatility, triggered by trade tensions and tariffs, has exposed risks even for leading private credit players like FSK. FSK's attractive 13%+ dividend yield could face imminent risks, as adjusted NII per share may not fully cover distributions through 2025 and 2026. Despite a resilient and diversified portfolio, ongoing rate headwinds and execution risks justify a cautious stance on FSK.