FBR Capital Reiterates an 'Outperform' on KKR Financial (KFN); Management On The Road: An Array Of Opportunities

FBR Capital reiterates an 'Outperform' on KKR Financial (NYSE: KFN).

FBR analyst says, "We continue to recommend KFN shares for several reasons: (1) the ability to leverage KKR's expertise to participate in unique investments that are inaccessible to others; (2) long-duration CLO liability structure that has, on average, 2.0 years of reinvestment period remaining; (3) a dividend payout well in excess of benchmark rates; (4) an earnings stream that, we believe, is inflation protected (KFN is net long $1.7 billion of LIBOR-based assets); and (5) an embedded "economic" book value markedly higher than GAAP indicates ($9.73 GAAP vs. $11.77 marked to market as of March 31.)"

For more ratings news on KKR Financial click here and for the rating history of KKR Financial click here.

Shares of KKR Financial closed at $9.68 yesterday.

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