KKR Financial (KFN)

Add a New Bears Reason Company: KKR Financial (KFN) Current price: Headline: (100 character max) Analysis: Cancel 50% agree 2 votes   KKR Financial Holdings LLC to increase by as much as 48%? Top Contributor: N L | Created when NYSE:KFN was $2.96 | Edit | History Recently FBR Capital Markets upgraded KKR to outperform with a PT of $4.00. Since March 31 following the improvement in the credit markets, management was able to enter into deals that alleviated certain CLO triggers that were trapping cash flow. These CLO’s (Collateralized Loan Obligations) are special purpose vehicles with securitization payments in the form of different tranches. All this means is that these payments are pooled together and passed on to the owners of these tranches similar to collateralized mortgage obligations. Although the current price might seem cheap compared to its book value investors should consider the significant risks in the capital/credit markets prior to investing. KKR continues to make investments in the same vehicles that caused its stock price to drop to .40 : commercial real esate loans, debt securities, asset-backed securities, corporate loand and debt securities. Sounds to me a 48% drop is in the cards just as much as a 48% increase. (100 character max) Cancel

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