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[Miles]

Wow look at KFN go. Found the article below interesting for charters...

Source: KKR Financial Holdings LLC to increase by as much as 48%?
KKR Financial Holdings LLC to increase by as much as 48%?

KKR Financial Holdings LLC (KFN - $2.90) 50 day SMA crossed above the 200 day SMA at $2.82. This is known as a "golden cross" to institutional traders (market movers). When the 50 day crosses below the 200 day this is called a "death cross". A stock trading above its 200 day SMA is looked at as healthy with an upward projection, the opposite is true for the inverse. These moving averages are also used for support and resistance levels. Many times when a 50 day SMA meets the 200 day SMA the stock heads back where it came from meeting its resistance or support level.


Most recently FBR Capital Markets upgraded KKR to outperform with a PT of $4.00. Since March 31 following the improvement in the credit markets, management was able to enter into deals that alleviated certain CLO triggers that were trapping cash flow. These CLO's (Collateralized Loan Obligations) are special purpose vehicles with securitization payments in the form of different tranches. All this means is that these payments are pooled together and passed on to the owners of these tranches similar to collateralized mortgage obligations. Although the current price might seem cheap compared to its book value, investors should consider the significant risks in the capital/credit markets prior to investing. KKR continues to make investments in the same vehicles that caused its stock price to drop to .40 : commercial real esate loans, debt securities, asset-backed securities, corporate loand and debt securities. Sounds to me a 48% drop is in the cards just as much as a 48% increase.

[Miles]

KKR Financial Holdings LLC Announces First Quarter Financial Results and Quarterly Distribution of $0.10 per Common Share

SAN FRANCISCO, April 29 /PRNewswire-FirstCall/ -- KKR Financial Holdings LLC (NYSE: KFN) ("KFN" or the "Company") today announced its results for the first quarter ended March 31, 2010.

First Quarter 2010 Highlights
Net income for the first quarter ended March 31, 2010 of $129.5 million, or $0.82 per diluted common share, as compared to a net loss for the first quarter ended March 31, 2009 of $13.0 million, or $(0.09) per diluted common share.

Book value per common share of $8.31 as of March 31, 2010, as compared to book value per common share of $7.37 as of December 31, 2009.

Unrestricted cash and cash equivalents increased to $240.5 million as of March 31, 2010, as compared to $97.1 million as of December 31, 2009.

Distribution of $0.10 per common share declared for the first quarter of 2010.

KFN's first quarter 2010 results reflect net investment income of $83.3 million and other income of $71.1 million, partially offset by other non-investment expenses of $24.9 million. Other income totaling $71.1 million primarily consists of the following: (i) realized gains on extinguishment of debt totaling $38.7 million from the purchase of $83.0 million of mezzanine and subordinate notes issued by KKR Financial CLO 2007-1, Ltd. ("CLO 2007-1") and KKR Financial CLO 2007-A, Ltd. ("CLO 2007-A") for an aggregate purchase price of approximately $44.3 million; (ii) realized gains on extinguishment of debt totaling $1.3 million from the repurchase and retirement of $95.2 million par amount of 7.0% convertible senior notes maturing in July 2012 (the "7.0% Notes"); (iii) net realized and unrealized gains on investments totaling $35.4 million; (iv) net realized and unrealized losses on investments in residential mortgage-backed securities totaling $5.1 million; and (v) net realized and unrealized losses from derivative positions and foreign exchange totaling $1.4 million.

Debt Transactions
During the first quarter ended March 31, 2010, in an open market auction, the Company purchased $10.3 million of mezzanine notes issued by CLO 2007-A for $5.5 million and $72.7 million of mezzanine and subordinate notes issued by CLO 2007-1 for $38.8 million. These transactions resulted in the Company recording an aggregate gain on extinguishment of debt totaling $38.7 million.

On January 15, 2010, the Company issued $172.5 million of 7.5% convertible senior notes due January 15, 2017. The Company received net proceeds from this offering, totaling $167.3 million.

During the quarter ended March 31, 2010, the Company repurchased and retired $95.2 million par amount of its 7.0% Notes, reducing the amount outstanding from $275.8 million as of December 31, 2009 to $180.6 million as of March 31, 2010. These transactions resulted in the Company recording a gain of $1.3 million, which was partially offset by a write-off of $0.6 million of unamortized debt issuance costs during the first quarter of 2010. In addition, during the quarter ended March 31, 2010, the Company paid down $25.0 million of its senior secured credit facility due 2011, reducing the amount outstanding from $175.0 million as of December 31, 2009 to $150.0 million as of March 31, 2010.

Distributions
On April 29, 2010, the Company's board of directors declared a cash distribution for the quarter ended March 31, 2010 on the Company's common shares of $0.10 per share. The distribution is payable on May 28, 2010 to common shareholders of record as of the close of business on May 14, 2010.

Book Value per Common Share
The Company's book value per common share was $8.31 as of March 31, 2010, as compared to $7.37 as of December 31, 2009.

Information for Investors: Conference Call and Webcast
The Company will host a conference call and audio webcast to review its first quarter end March 31, 2010 results on April 29, 2010, at 5:00 p.m. EDT. The conference call may be accessed by dialing (888) 765-5574 (Domestic) or (913) 312-1302 (International); a pass code is not required. A telephonic replay of the call will be available through May 13, 2010 by dialing (888) 203-1112 (Domestic) and (719) 457-0820 (International) / pass code 9334508. Supplemental materials that will be discussed during the call and the live audio webcast will be available in the Investor Relations section of the Company's website at KKR: Asset Management: KKR Financial Holdings LLC: Investor Relations. An audio replay of the webcast will be archived in the Investor Relations section of the Company's website.