$FSK

The article evaluates three high-yield credit vehicles: BlackRock TCP Capital (TCPC), FS KKR Capital (FSK), and Oxford Lane Capital (OXLC). TCPC reported adjusted EPS of 21 cents, NAV per share decline, and a portfolio sale. FSK beat EPS estimates, reduced leverage, and received sponsor support. OXLC offers the highest yield but with CLO equity risks. All three have seen share price declines and varying risks.

Private credit markets are showing increasing signs of distress, with non-accrual debt rising among the largest BDCs. In Q2, non-accrual debt at the top 10 BDCs increased to 3.95% of total debt, up from 3.75% in Q1. The broader BDC universe also saw a rise in non-accrual borrowers, reaching 4.69% in Q1 2026. Adjusted non-accrual rates are higher, indicating wider credit stress. Interest income at risk is climbing, potentially impacting BDC yields.

Analysts have raised their price targets for FS KKR Capital (FSK) to a range of US$11 to US$13, citing optimism around execution and balance sheet progress. RBC Capital, JPMorgan, and Truist increased targets, though maintained neutral ratings. Fair value estimate rose from US$11.50 to US$12.05, with adjusted revenue and margin assumptions.

FS KKR Capital Corp. shareholders approved a proposal to sell shares below net asset value (NAV), with 103,799,016 votes in favor. This move, approved on August 20, 2026, provides the company with more capital-raising flexibility. The approval allows FSK to issue shares below NAV, subject to conditions, which could help fund investments or repay debt but may dilute existing shareholders. The company has no immediate plans to issue shares under this authorization.

FS KKR Capital Corp (FSK) filed an SEC Form 8-K — Submission of Matters to a Vote of Security Holders. Item 5.07. Submission of Matters to a Vote of Security Holders. FS KKR Capital Corp. (the “Company”) held its Annual Meeting of Stockholders (the “Annual Meeting”) on June 18, 2026. On June 18, 2026, the Company adjourned the Annual Meeting with respect to the Share Issuance Prop

Analysts updated ratings for WisdomTree (WT), Cypherpunk Technologies (CYPH), and FS KKR Capital (FSK). WT received a Buy rating with a $26 target (current: $23.39). CYPH got a Buy rating with a $1.60 target (current: $0.81). FSK was rated Hold with an $11 target (current: $12.00).

The Financial Times reports that private credit portfolios are facing increasing strain, with troubled loans at decade highs. Publicly traded BDCs saw a median 2.8% of loans on non-accrual status in Q2. Industry leaders like Golub Capital and Fitch Ratings note elevated credit stress and record defaults. BDCs managed by KKR, Blue Owl, and Apollo saw repayments outpace new lending. Higher borrowing costs and weaker growth are contributing to the challenges, with some funds marking down loans to s

RBC Capital Markets raised its price target on FS KKR Capital to $13 from $11 and kept a Sector Perform rating, according to the note cited in the article. The stock last showed $12.17, down 0.65% on the day and up 10.24% over five days.

FS KKR Capital (FSK) is advancing a $600 million shareholder and balance-sheet plan to narrow the discount to NAV. It includes a $150 million tender offer, a $150 million convertible preferred investment by a KKR subsidiary, and a $300 million repurchase program. FSK repurchased shares at about $10.73 vs June 30 NAV of $18.30 (about 41% lower).

FS KKR Capital Corp. reported Q2 2026 results, saying NAV fell 2.8% mainly due to valuation marks on PRG, ATX and Wittur. The firm reduced net debt-to-equity to 122% and sold $500 million of investments to improve asset quality. It projected net investment income of 8% to 9% of NAV for 2026 and plans $300 million of remaining buybacks.