KKR Income Opportunities Fund is a high-yield fixed-income fund that focuses on generating high current income. Its investment portfolio consists of floating-rate bank loans and high-yield bonds. KIO currently offers a very attractive and fully covered 11.6% distribution yield and is currently trading at a small discount of roughly -4.3%. However, there are some risks involved, and the fund may get even cheaper depending on the direction of interest rates. There is also some risk of dividend reduction, but it should be minor.
Encinitas, California--(Newsfile Corp. - February 13, 2025) - Kiora Pharmaceuticals, Inc. (NASDAQ: KPRX) today announced that the U.S. Patent and Trademark Office has issued a composition-of-matter patent (US-12209073-B2) on a specific crystalline form, or polymorph, of KIO-104. KIO-104 is a novel, non-steroidal anti-inflammatory, small molecule inhibitor of dihydroorotate dehydrogenase (DHODH).
Encinitas, California--(Newsfile Corp. - February 11, 2025) - Kiora Pharmaceuticals, Inc. (NASDAQ: KPRX) ("Kiora" or the "Company") today announced it received regulatory approval to initiate KLARITY, a Phase 2 clinical trial to investigate KIO-104 in patients with retinal macular edema, a condition where build-up of fluid behind part of the retina can be associated with adverse vision changes. KIO-104 is a potent, locally delivered small molecule being developed as an alternative to steroids or systemic anti-inflammatory drugs, both of which have known shortcomings.
KKR Income Opportunities (KIO) is acquiring Insight Select Income Fund (INSI), shifting INSI shareholders from investment-grade bonds to high-yield, risky CCC credits. KIO shareholders will benefit from an increased AUM and potential market dislocation advantages. KIO's portfolio is heavily invested in CCC names, making it a high-risk, high-yield fund, sensitive to economic downturns.
The KKR Income Opportunities Fund offers a high 10.95% yield but faces potential distribution cuts due to declining floating-rate securities and bond prices. The fund's recent performance has been poor, with a 9.46% share price decline since October 2024, underperforming both investment-grade and junk bonds. The fund's portfolio appears to have shifted back to floating-rate securities at a time when the Fed is cutting rates.
Encinitas, California--(Newsfile Corp. - July 30, 2024) - Kiora Pharmaceuticals (NASDAQ: KPRX) ("Kiora" or the "Company") today announced it has received Orphan Medicinal Product Designation from the European Medicines Agency (EMA) for the treatment of a group of inherited retinal diseases (IRDs) that include retinitis pigmentosa (RP), choroideremia and more. The broad designation covers KIO-301, a small molecule photoswitch, for the treatment of non-syndromic rod-dominant retinal dystrophies.
KKR Income Opportunities Fund prioritizes high current income through fixed income and loan investments, offering a 10.4% dividend yield. KIO outperformed the S&P 500 in total return, despite having a portfolio full of junk rated investments. KIO's distribution is issued on a monthly basis, making it ideal for retired investors that value consistent income.
KKR Income Opportunities is a high beta fixed income CEF focused on U.S. high yield with a heavy CCC exposure. The fund's high credit risk and tight credit spreads suggest a risk-off event could result in lower prices. Active portfolio management is recommended for high beta names like KIO, with a suggestion to reduce exposure in the current market environment.
The KKR Income Opportunities Fund specializes in generating a high level of income for shareholders, with a current yield of 12.15%. The KIO closed-end fund has performed well over the past few years, with a 12-month return of 21.88% and a three-year return of 17.36%. The fund invests in a portfolio of debt securities, including senior loans and high-yield bonds, and employs leverage to boost its effective portfolio yield.
We take a look at KIO - a credit CEF which has attracted a number of misconceptions. These relate to the fund's absolute and risk-adjusted performance relative to both stocks and other credit CEFs. KIO is not an attractive holding at present given extremely low-quality allocation in an expensive credit market environment.