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FS KKR Private Credit Fund Cuts Dividend Amid Rise in Bad Loans

Bloomberg Markets
Thursday, February 26, 2026 at 12:19 AM
~4 min read
BankingMonetary Policy

Original Report

A private credit fund jointly managed by Future Standard and KKR & Co. cut its dividend to 48 cents a share from 70 cents after earnings fell amid declining interest rates and losses tied to...

A private credit fund jointly managed by Future Standard and KKR & Co. cut its dividend to 48 cents a share from 70 cents after earnings fell amid declining interest rates and losses tied to struggling investments.

Glass House Analysis

This development in the banking sector reflects broader tensions between regulatory pressure and financial industry practices. Interest rate policy directly affects household budgets—higher rates mean more expensive mortgages, car loans, and credit card debt, squeezing middle-class families while benefiting savers and banks. The banking system serves as the circulatory system of the economy; any disruption ripples through to small businesses, homebuyers, and everyday consumers who depend on credit access.

Corporate decisions reverberate through local communities—a merger might mean headquarters relocating, a restructuring could eliminate jobs, and strategic shifts affect suppliers and service providers in countless towns. Behind quarterly earnings numbers are real employment decisions, investment choices, and community impacts that shape the economic landscape of regions across the country.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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