KKR Group Finance Co. IX LLC 4.625% Subordinated Notes due 2061 research snapshot
KKRS AI stock analysis covers KKR Group Finance Co. IX LLC 4.625% Subordinated Notes due 2061, not KKR common stock. At the August 3, 2026 data cutoff, StockAnalysis.com showed a July 31, 2026 close of $16.25 on the NYSE, down 0.49% on the day. The notes have $25 denominations, $500 million original aggregate principal amount, a fixed 4.625% coupon paid quarterly, and a maturity of April 1, 2061. At $16.25 the notes traded about 35% below par, implying a verified current yield of about 7.12% on the $1.15625 annual coupon per unit, calculated with financial_rigor.py. The issuer, KKR & Co. Inc., reported record second quarter 2026 results on July 30, 2026, with AUM of $796 billion up 16% year over year, fee related earnings of $1.2 billion or $1.32 per adjusted share up 37%, and adjusted net income of $1.5 billion or $1.63 per adjusted share up 40%, with the notes redeemable at par plus accrued interest on or after April 1, 2026 and interest deferrable for up to five consecutive years. The relevant work is issuer credit, coupon income, call optionality, duration, subordination, and liquidity, not a common-stock earnings multiple. This page uses scenarios rather than a price prediction and is for informational use only, not investment advice.
Current price
$16.25 July 31, 2026 close
Market cap
About $325.0 million market value of the notes
AI score
62 / 100
Rating
Discounted fixed-coupon subordinated note with record issuer results, long duration, and open call optionality
Trend status
Rangebound near the low end of the 52-week range, below the 100-day and 200-day moving averages, with low volatility and modest volume
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | KKRS is a subordinated contractual claim on KKR Group Finance Co. IX LLC, fully and unconditionally guaranteed on a subordinated basis by KKR & Co. Inc. and KKR Group Partnership L.P. Holders rely on issuer and guarantor cash flow, not common-equity ownership. | High |
| Moat | KKR's scale, brand, private-markets relationships, fee franchise, and Global Atlantic insurance channel support issuer quality. Those features do not remove KKRS subordination, long maturity, or rate sensitivity. | Medium-high |
| Management | Management should be judged on leverage, liquidity, funding cost, capital allocation, credit underwriting, and whether the firm keeps hybrid capital outstanding when 4.625% remains attractive financing for the issuer. Q2 2026 results showed record fee related earnings of $1.2 billion and AUM up 16% to $796 billion. | Medium-high |
| Financial trend | Issuer KKR reported record Q2 2026 results on July 30, 2026: revenue of $5.726 billion, common net income of $660 million, AUM of $796 billion up 16%, fee related earnings of $1.2 billion up 37%, total operating earnings of $1.5 billion up 29%, and adjusted net income of $1.5 billion up 40%, with $133 billion of capital raised over the trailing 12 months. | High |
| Valuation | At $16.25 versus $25 par, verified math shows about 0.65x par, a 7.12% current yield, and about $325.0 million market value on 20 million $25 units, calculated with financial_rigor.py. Equity PE is not the right valuation tool for this note. | High |
| Technical trend | Barchart placed KKRS at $16.25 on July 31, 2026, near the 20-day moving average of $16.25 but below the 100-day of $16.50 and the 200-day of $17.08, with 14-day RSI near 48.38 and 14-day ADX near 14.57 signaling a weak, rangebound trend within a $15.86 to $19.30 52-week range. | Medium |
| Risk level | Medium-high. KKRS is long dated, subordinated, optionally callable at par since April 1, 2026, sensitive to rates and credit spreads, carries a five-year optional interest deferral feature, and can trade with limited daily volume. | High |
| AI confidence | High for terms, issuer filings, dividend history, and verified yield math. Medium for near-term price path because call timing, rate moves, and liquidity can dominate chart signals in a thin book. | Medium-high |
| Investment certainty | Low to medium. A security-specific yield, tax, call, and liquidity review is required before any income decision, even when the issuer platform quality is strong and reported results are record-setting. | Low-medium |
KKRS AI stock forecast
The KKRS AI stock forecast is a price-and-income scenario for a fixed-coupon subordinated note, not an equity target. The coupon is fixed at 4.625% of the $25 denomination, or $1.15625 a year per unit, paid quarterly, and the issuer may defer interest for up to five consecutive years. Equity-style EPS and three-scenario PE models are not economically applicable. Price behavior will depend on Treasury yields, credit spreads, KKR funding needs, call decisions, and quoted liquidity.
$18 to $22
More likely if market yields for similar hybrid paper fall, KKR credit spreads tighten, investors reprice long-duration subordinated cash flows higher, the KKR Q2 2026 fundraising momentum continues, and liquidity remains orderly while the note stays outstanding.
$15.50 to $18
More likely if rates stay elevated relative to the 4.625% coupon, KKR credit remains sound, and the market continues to price a material discount to par for duration and subordination while quarterly interest is paid.
$13 to $15.50
More likely if required yields rise further, alternative-manager credit spreads widen, private-credit or insurance stress hurts issuer confidence, the issuer exercises its deferral option, or thin liquidity forces a wider discount on any forced sale.
KKRS AI technical analysis
KKRS AI technical analysis uses the StockAnalysis.com and Barchart July 31, 2026 close of $16.25 as of the August 3, 2026 data cutoff. Barchart placed the note near the 20-day moving average of $16.25 but below the 100-day of $16.50 and the 200-day of $17.08, with 14-day RSI near 48.38, 14-day ADX near 14.57, and 14-day historical volatility near 4.45%, all consistent with a low-volatility, rangebound security rather than a trending equity. For a thinly traded subordinated note, live bid, ask, accrued interest, current yield, and yield-to-call assumptions matter more than a common-stock moving-average stack.
| Level | Value | Why it matters |
|---|---|---|
| Reference price | $16.25 | StockAnalysis.com listed this regular-session close on July 31, 2026, down 0.49%. It is the latest independently sourced quote used for yield and market-value math on this page. |
| Near support | $15.86 | Reported 52-week low. A break below it would put a fresh multi-month low in view and should be checked against rates, credit, and quoted depth. |
| Near resistance | $17.00 to $19.30 | The 200-day moving average near $17.08 and the reported 52-week high of $19.30 are reference levels, not guaranteed ceilings. |
| Par and call reference | $25.00 plus accrued interest | The notes were issued in $25 denominations. On or after April 1, 2026, the issuer may redeem at principal plus accrued interest. A deep discount can coexist with an open call because the issuer may prefer to keep low-cost 4.625% capital outstanding. |
| Moving averages | 5-day $16.29, 20-day $16.25, 50-day $16.27, 100-day $16.50, 200-day $17.08 | Barchart reported the moving average stack on July 31, 2026. The price sits at the 20-day, slightly below the 50-day, and below the 100-day and 200-day lines. |
| Momentum and volume | RSI near 48, weak ADX, modest volume | Barchart showed 14-day RSI near 48.38, 14-day ADX near 14.57, and 72,251 notes traded on July 31, 2026 versus a roughly 30,970 20-day average, with a day range of $16.24 to $16.35. Thin trading can create gaps and wider spreads. |
| Volatility | Low measured volatility, rate and credit-spread sensitive | Barchart reported 14-day historical volatility near 4.45% and an average true range near $0.12. Despite low measured volatility, KKRS can reprice when long rates move or when alternative-manager credit spreads change. |
| Invalidation | Break below $15.86 with weaker issuer credit evidence | A new range low combined with wider KKR credit spreads, weaker fundraising, insurance stress, or a payment-status concern would weaken an income thesis. |
KKRS AI trading strategy
The KKRS AI trading strategy is a monitoring framework for a discounted fixed-coupon subordinated note. It is not personalized advice and should not be used without live quotes, accrued-interest checks, tax review, and position-size limits.
Calculate current yield from a live price, compare it with other KKR and alternative-manager hybrids, and model the economic outcome if the issuer redeems at $25 plus accrued interest. At $16.25, verified coupon income is about $1.15625 a year per unit, or roughly 7.12% current yield before taxes and costs.
Do not treat the coupon as total return. A call at par would be favorable for a buyer below par, but the issuer may leave the notes outstanding while 4.625% remains cheap funding. Taxes, spreads, accrued interest, and the five-year deferral option still matter.
Monitor long Treasury yields, hybrid credit spreads, KKR AUM and fee related earnings updates, Global Atlantic commentary, ratings actions, and any redemption or interest notice. The KKR Q2 2026 record results, $34 billion of new capital raised in the quarter, and $796 billion AUM are the current issuer context.
Reassess if required market yields rise, KKR credit metrics weaken, private-credit marks deteriorate, the issuer defers interest, or liquidity dries up enough to make exit costly.
Use limit orders and inspect bid-ask spreads, recent volume, and accrued-interest conventions. Barchart and StockAnalysis showed about 30,970 notes of 20-day average volume and 72,251 traded on July 31, 2026, so this is not a high-turnover equity.
Avoid market orders in a thin book. A strategy is invalid if the intended exit cannot be executed near the modeled price.
Investment research summary
KKRS holders provide long-dated subordinated capital to a KKR financing subsidiary. KKR earns management fees, transaction fees, investment income, carried interest, insurance earnings, and related income by running private equity, credit, infrastructure, real assets, capital markets, and Global Atlantic. Noteholders receive contractual interest under the indenture, not equity upside, and the issuer may defer interest for up to five consecutive years.
KKR's moat comes from global deal sourcing, institutional relationships, scale, underwriting talent, permanent and long-duration capital, brand trust, and the insurance channel, with AUM at $796 billion as of June 30, 2026. That moat supports debt service capacity, but KKRS still ranks as subordinated debt with hybrid features.
The thesis fails if an investor confuses a deep discount with safety, ignores duration and rate risk, underestimates subordination or the optional interest deferral, cannot exit in a thin market, or assumes the issuer will call just because the call window is open.
Co-CEOs Joseph Bae and Scott Nuttall have pushed KKR toward credit, infrastructure, insurance, and wealth distribution, with record Q2 2026 fee related earnings of $1.2 billion and $133 billion of capital raised over the trailing 12 months. For KKRS, the key management tests are funding discipline, leverage, liquidity, and whether hybrid capital is managed in ways that protect creditors through a credit cycle.
Private markets, private credit, infrastructure, and insurance-linked capital remain long-term demand areas, and KKR reported AUM up 16% year over year to $796 billion. The same trend can increase competition, regulation, fee pressure, and scrutiny after credit accidents, which can reprice hybrid paper even when coupons continue to be paid.
At $16.25 versus $25 par, the discount is the main source of yield and potential price recovery, with a verified current yield of about 7.12%. Margin of safety is still limited by long maturity, subordination, the deferral option, rate risk, and liquidity. Compare live current yield, alternative hybrid yields, and issuer credit before drawing a conclusion.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| KKRS reference price | $16.25 close on July 31, 2026, down 0.49% on the day | StockAnalysis.com KKRS quote | August 3, 2026 |
| 52-week range and volume | $15.86 to $19.30 52-week range, day range $16.24 to $16.35, volume about 72,251 on July 31, and 20-day average volume about 30,970 | StockAnalysis.com KKRS history | August 3, 2026 |
| Security type, principal, and denomination | 4.625% Subordinated Notes due 2061, $500 million original aggregate principal, $25 denominations, and about 20 million note units | SEC prospectus supplement for KKR Group Finance Co. IX LLC | August 3, 2026 |
| Coupon, payment dates, and maturity | 4.625% fixed annual coupon, $1.15625 annual interest per $25 unit, payable quarterly on January 1, April 1, July 1, and October 1, maturing April 1, 2061 | SEC prospectus supplement | August 3, 2026 |
| Optional redemption and deferral | Redeemable in whole or in part on or after April 1, 2026 at principal amount plus accrued and unpaid interest, subject to indenture terms, with at least $25 million aggregate principal required to remain outstanding; issuer may defer interest for up to five consecutive years | SEC prospectus supplement | August 3, 2026 |
| Guarantee and subordination | Fully and unconditionally guaranteed, jointly and severally, on a subordinated basis, by KKR & Co. Inc. and KKR Group Partnership L.P.; the notes rank junior to all existing and future senior indebtedness and are effectively subordinated to secured debt of the issuer and guarantors | SEC prospectus supplement | August 3, 2026 |
| Current yield and market-value math | About 7.12% current yield at $16.25, and about $325.0 million market value using $16.25 times 20 million units or $500 million principal times the $16.25/$25 price-to-par ratio, verified with financial_rigor.py | StockAnalysis.com, SEC prospectus, and financial_rigor.py | August 3, 2026 |
| Dividend history and yield snapshot | Annual dividend of $1.16 per unit at a 7.12% yield, paid quarterly at about $0.2891 per quarter, with the June 15, 2026 ex-dividend date and July 1, 2026 payment date | StockAnalysis.com KKRS dividend page | August 3, 2026 |
| KKR Q2 2026 fee related earnings | Record fee related earnings of $1.2 billion, or $1.32 per adjusted share, up 37% year over year, with a FRE margin near 70% | KKR Q2 2026 earnings release, SEC 8-K | August 3, 2026 |
| KKR Q2 2026 total operating earnings and adjusted net income | Total operating earnings of $1.5 billion, or $1.68 per adjusted share, up 29% year over year; adjusted net income of $1.5 billion, or $1.63 per adjusted share, up 40% year over year | KKR Q2 2026 earnings release, SEC 8-K | August 3, 2026 |
| KKR AUM and fundraising | AUM of $796 billion up 16% year over year, fee paying AUM of $638 billion up 15%, $34 billion of new capital raised in Q2 and $133 billion over the trailing 12 months, capital invested of $24 billion in Q2 and $104 billion over the trailing 12 months | KKR Q2 2026 earnings release, SEC 8-K | August 3, 2026 |
| KKR Q2 2026 GAAP revenue and common net income | GAAP total revenues of $5.726 billion up 12.52% year over year, and net income attributable to KKR common stockholders of $660 million, with basic EPS of $0.74 and diluted EPS of $0.70 | StockAnalysis.com quarterly income statement and KKR 8-K | August 3, 2026 |
| KKR segment AUM detail | Private Equity AUM of $255 billion up 19% year over year, Real Assets AUM of $211 billion up 18%, and Credit and Liquid Strategies AUM of $331 billion up 13%, with Global Atlantic AUM of $220 billion including $164 billion of credit AUM | KKR Q2 2026 earnings release | August 3, 2026 |
| KKR common stock reference | KKR common stock closed at $101.43 on July 31, 2026 with a market cap near $91.06 billion, using about 897.78 million shares outstanding, down 32.57% over the trailing 52 weeks | StockAnalysis.com KKR quote and statistics | August 3, 2026 |
| Technical snapshot | 5-day moving average near $16.29, 20-day near $16.25, 50-day near $16.27, 100-day near $16.50, 200-day near $17.08, 14-day RSI near 48.38, 14-day ADX near 14.57, and 14-day historical volatility near 4.45% | Barchart KKRS technical analysis | August 3, 2026 |
KKRS is an exchange-traded subordinated note, not KKR common stock. This page is an informational research tool, not investment, legal, accounting, or tax advice. Forecast scenarios use available terms and data as of August 3, 2026, may be wrong, and do not account for reader objectives, taxes, liquidity needs, or risk tolerance. Verify the current quote, accrued interest, prospectus, call notice, and issuer disclosures before acting.
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