KKR Eyes Investing Opportunity in Private Investment-Grade Debt

Investors looking for both yield and duration should consider areas including private investment-grade and asset-backed debt, according to KKR & Co.

Higher interest rates have slowed the pace of net new issuance in the traditional blue-chip and high-yield bond markets as many companies focus on refinancing or paying down debt rather than borrowing for acquisitions. At the same time, investors have flocked to fixed income looking to take advantage of high yields on relatively safe assets, according to KKR.

That is creating an imbalance between supply and demand that has helped drive investment-grade spreads to the tightest since 2005, limiting ...