Summary
- KIO is a high-yield bond / leveraged loan CEF from KKR.
- The fund is overweight CCC credits and has leverage on top, running significant credit risk.
- With CCC credits all-in yields now close to 17% and forecasted default rates, which are not apocalyptic, the collateral is starting to price in a full recession.
- This article covers CEFs from our suite of products - we focus on macro portfolio allocation, CEFs, and yield-generating options strategies, targeting overall yearly portfolio returns of 9%+.
For further details see:
KIO: 12% Yield From This Fixed Income CEF