FS KKR Capital Corp trades at a steep 32% discount to NAV, offering a compelling risk-adjusted entry point. The ~19% yield is compelling, but even as a FSK bull, I have to admit that these are one of the last days (quarters) when we see it this high. If we assume a massive 40% cut, we would still be getting material current income streams.

FS KKR Capital is cutting its base cash dividend by 29.7% to $0.45 per share, with the BDC's yield now the largest versus its large-cap peers. The move comes as NAV per share grew marginally during the third quarter by 6 cents sequentially, against what's been a broader decline since 2023. FSK is trading at a material 34% discount to NAV, with the move to reduce its dividend set to be helpful to drive a recovery and a possible discount narrowing.

The market looks very overvalued today. However, there is a corner of it that appears largely overlooked. I detail why I am pouring a large percentage of my portfolio into this golden buying opportunity.

This Is How I'm Harvesting BDC Cash Flows For My Retirement. The double-digit yields, term 'private credit,' cases like First Brands and Tricolor are just some examples that introduce a high degree of skepticism. However, if done right, BDCs can bring a lot of value to the table for safe passive income investors.

BDCs face earnings pressure from lower base rates, but fears of severe dividend cuts are overstated. Quite many BDCs have several levers to pull in order to absorb ~100 bps of base rate cuts without touching their dividends. Yet, I would say that the non-accrual risk is understated.

Geneos Wealth Management Inc. lifted its position in FS KKR Capital Corp. (NYSE: FSK) by 58.2% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 559,345 shares of the company's stock after buying an additional 205,823 shares during the

Caxton Associates LLP bought a new position in shares of FS KKR Capital Corp. (NYSE: FSK) in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 170,900 shares of the company's stock, valued at approximately $3,546,000. A number of

Agency mortgage REITs duel to the dividend cut. There are 7 facing off. The top 3 are much better than the other 4. Valuations are important and awful. Deal with it.

The market seems to question the true fair value of BDC portfolios. There is a fear that the BDCs will start to report elevated non-accruals, which would make their life more difficult (as they have already a lower interest rate problem at hand). For durable and high-yield income investors this has created a truly enticing and timely opportunity, which simply has to be explored given the direction of overall asset yields.

There is certainly no shortage of arguments why not to invest in BDCs. The sector median BDC trades at a 21% discount to NAV. For me, this provides an opportunity to scoop up unfairly punished gems.