KKRT: Long-Dated Bond From KKR, Down -8% This Year

Binary Tree Analytics5.62K FollowersFollow5ShareSavePlay(7min)CommentsSummaryKKR & Co. Inc.'s 6.875% Subordinated Notes offer liquidity and transparency as exchange-listed baby bonds with a $25 par value.KKRT's long maturity (2065) and high duration (14 years) make it highly sensitive to credit spreads and market risk.Despite an -8% price decline YTD and a 7.3% current yield, we remain at 'Hold' until yields reach 7.5-7.6% to compensate for risk.KKRT becomes more attractive in the mid-7s yield range, but further spread widening or liquidity stress could present better entry points.onurdongel/iStock via Getty Images Thesis Investors have most certainly heard about KKR & Co. Inc. (KKR) by now, a leading alternative asset manager with assets under management of over $750 billion and a market capitalization of $79 billion. The company has been inThis article was written byBinary Tree Analytics5.62K FollowersFollowWith an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.