FS KKR Capital's Discount to NAV Justified, but Bottom May Be Reached

FS KKR Capital's discount to net asset value is justified due to elevated nonaccruals at fair value and weaker dividend coverage. However, the BDC grew NAV on a quarterly basis for the first time in three years, and the bottom may be in. Despite the discount, FSK's fundamentals have improved, making it a potential turnaround opportunity.