>The ratings firm lowered the debt ratings of FS KKR Capital Corp one notch to Ba1 from Baa3
Meh, not really a large shift. KKR’s fund specifically does a lot of distressed debt work so it’s never been something that was considered high credit quality.
Methodical_Science on
If only we didn’t have a recent example in history where bad debt from creditors was allowed to increase exponentially without necessary safeguards for investors causing a systemic debt bomb that exploded and crashed the entire economy…
Now, picture taking that debt and bundling it into securities. And then bundling those bundles of securities. Once more because what could go wrong? Creditors are responsible entities right?
It’s what the private credit market is doing. Sound familiar? Replace Subprime mortgages with subprime AI loans.
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>The ratings firm lowered the debt ratings of FS KKR Capital Corp one notch to Ba1 from Baa3
Meh, not really a large shift. KKR’s fund specifically does a lot of distressed debt work so it’s never been something that was considered high credit quality.
If only we didn’t have a recent example in history where bad debt from creditors was allowed to increase exponentially without necessary safeguards for investors causing a systemic debt bomb that exploded and crashed the entire economy…
Now, picture taking that debt and bundling it into securities. And then bundling those bundles of securities. Once more because what could go wrong? Creditors are responsible entities right?
It’s what the private credit market is doing. Sound familiar? Replace Subprime mortgages with subprime AI loans.