KKR Is Betting on a Credit Comeback After a Crushing Year
- Credit to be more attractive than equity in next 6-12 months
- Investors should be prepared to buy ‘on the way down’
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After a dismal year for US corporate credit, KKR & Co. sees opportunities to scoop up some of the battered debt next year.
Credit returns were crushed in 2022 as a double whammy of rate increases and recession concerns hit the market hard. High-grade bonds are nursing a total return loss of about 14%, while junk bonds are down 10%.