The new baby bond from KKR Finance is now trading under ticker KKRS.
The issue, with a coupon of 4.625%, shot out of the gate with and is now trading at $25.81.
J noted the trading start.
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7/25/2024
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The first KKRS trade of the day was 1,000 shares @ 27.85. The next trades were all at 25.69.
It closed today at 25.85, so somebody just overpaid by $2,000. . . Another “market” order lesson . .
I remember a pretty good discussion on this particular issue. I was left not overly impressed. Sometimes I wonder just how much true homework/research some of these investors actually do??? Let me give you are classic example of exactly what Iam talking about. Many of us including myself own a nice position in “IPLDP” which today is trading at a ridiculous price of $26.62. But here’s the caveat. Its callable at anytime at $25. Classic example of people not doing any homework.
“Classic example of people not doing any homework”
Yup.
And let’s not forget those limit orders, people !!!!
Speaking for myself, my full position in a security is 200 – 350 shares. Small potato compared to some people here. I did back up the truck for DUK-A and SR-A this past March.
Anyway, being such a small position if I grab something at $26 and it gets called it would not break the bank. But SR-A now trading at $28 is out of bounds. However, with a lack of good options and not wanting to climb up the risk tree and if I plan to hold long term, call risk to me is acceptable.
And yes, I am underwhelmed by the KKR coupon with fear of its reaction to interest rates rising, if ever.