KKR on private junior debt coming of age

A private junior debt strategy offers higher yields than fixed income vehicles and lower risk than equity investments, says KKR’s Michael Small.

This article is sponsored by KKR

The recession that seems to be looming might tempt investors to look for the safest parts of the capital structure. But Michael Small, a partner in KKR’s credit and markets business, says that the growth of covenant-lite senior debt has made private junior debt investing in large, well-capitalised companies in stable and resilient sectors ideally suited to the current macroeconomic environment.

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