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KKR Financial’s Commercial Paper Problems
Posted: February 20, 2008 at 11:03 am by Chuck
KKR Financial Corp (KFN) has delayed repayment of billions of dollars of commercial paper for the second time. The bank has also started a new round of restructuring talks with creditors, less than six months after a rescue rights issue.
S&P down about 10 points, Nasdaq down about 8.5 and the Dow is down around 75 points. Oil has dropped over a dollar and gold is down 4 bucks. I see a volatile day unfolding, be careful out there.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-jpy-small.gif)
![[US Dollar Index]](http://www.weblinks247.com/indexes/idx24_usd_en_2.gif)
Does KKR pony up with managing partners’ money again? Will be interesting to see how much private equity activity slows down. The LBO model is not unlike buying a home with mortgage debt. If the lenders aren’t lending, private equity funds will not be buying.
There’s still so much we all don’t know about the depth of the financial problem. All we can do is try to keep up with the developments! I can’t imagine smart money is buying very much at this point.