Earnings season could finally give the stock market some good news. Here’s what’s ahead
tioo Business
Earnings season could finally give the stock market some good news. Here’s what’s ahead



The S&P 500 could join other U.S. benchmarks in a correction next week. Here’s what’s ahead
tioo Business
The S&P 500 could join other U.S. benchmarks in a correction next week. Here’s what’s ahead



Moody’s cuts rating on private credit fund run by KKR and Future Standard to junk as bad loans grow
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Moody’s cuts rating on private credit fund run by KKR and Future Standard to junk as bad loans grow


A KKR logo displayed on the floor of the New York Stock Exchange on Aug. 23, 2018.

Brendan McDermid | Reuters

Moody’s Ratings on Monday downgraded a private credit fund run by KKR and Future Standard to junk amid rising bad loans and a string of weak earnings.

The ratings firm lowered the debt ratings of FS KKR Capital Corp by one notch to Ba1 from Baa3 — pushing it into “junk” territory — saying that the fund’s underlying asset quality had worsened more than its peers.

Non-accrual loans, meaning borrowers who have stopped making payments, rose to 5.5% of total investments at the end of 2025, one of the highest rates among rated BDCs, according to the report.

“The downgrade reflects FSK’s continued asset quality challenges, which have resulted in weaker profitability and greater net asset value erosion over time relative to business development company (BDC) peers,” Moody’s said, referring to the fund by its ticker.

Shares of FSK dropped 4% in morning trading. They’ve plunged by more than 30% this year.

The move by Moody’s is the latest sign of distress in the private credit world. Retail investors have been rushing to withdraw funds, running into gates amid concerns about upcoming credit losses, especially related to software loans. Asset managers from Blackstone to Blue Owl have had to contend with elevated redemption requests for their private credit funds, a potential turning point for a category that has seen explosive growth in the past decade.

FSK, which lends to private, middle-market U.S. companies, became the second-largest publicly traded BDC when it was formed through a merger of two predecessor funds in 2018.

Funds like FSK issue debt to help juice returns, so the Moody’s downgrade could increase its borrowing costs and, therefore, lower future returns.

“FSK remains well positioned despite the decision,” a spokesperson told CNBC in an email. “It has a strong, well‑laddered liability structure with no 2026 unsecured maturities and limited near‑term maturities, enabling us to continue supporting our portfolio companies and navigate the current market environment.”

Moody’s also flagged other aspects of the fund that could expose it to greater losses over time, including higher leverage, a higher proportion of payment-in-kind loans, and a lower percentage of first-lien loans than peers.

FSK posted a net loss of $114 million in the fourth quarter and earned just $11 million in net income for all of 2025, according to Moody’s.

The fund’s largest single category of loans is for software and related services, which made up 16.4% of exposure at yearend.

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Steve Eisman says investors should ignore U.S.-Iran war, will be long-term ‘positive’
tioo Business
Steve Eisman says investors should ignore U.S.-Iran war, will be long-term ‘positive’


Steve Eisman says investors should ignore U.S.-Iran war, will be long-term ‘positive’

Steve Eisman of “The Big Short” fame said investors should ignore the U.S.-Iran war as it could be a long-term positive for markets.

In fact, when the investor was asked Monday by CNBC’s Joe Kernen on “Squawk Box” whether he would change anything because of the conflict, he responded with, “Not a single trade.”

“I think long term, this is very, very positive,” Eisman said. “People react because of what’s happening, oil prices are obviously up. But if it goes well, two months from now, prices will be back to where they were.”

The stock market was in turmoil Monday after the U.S. in a joint attack with Israel struck Iran over the weekend and killed the country’s supreme leader, Ayatollah Ali Khamenei, an assault that triggered retaliatory attacks from Tehran.

Historically, geopolitical conflicts have little lasting effect on stocks. In data going back to 1980, the S&P 500 on average is unchanged the day after such an event, according to Barclays’ trading desk. Studies show stocks tend to recover within a month after the start of a conflict.

But sharply higher oil prices, and the potential for the war to spread across the region, could pressure the stock market for longer this time. Stocks were already close to record highs ahead of the clash, but the pace of the bull market had begun to slow on concerns about artificial intelligence’s overall impact on the economy.

In expressing his own views on the conflict, “The Real Eisman Playbook” podcast host and former Neuberger Berman money manager said he’s supportive of President Donald Trump’s actions against a regime he called a “death cult.”

However, he also acknowledged the war may take longer than expected.

“This is going to take time,” he said.