KKR Financial made news when it announced it was selling $5 billion in mortgages at a steep loss. It later warned it could lose up to $300 million. Apparently, it was having trouble off-loading loans via asset-backed commercial paper. But KKR Financial, which went public about two years ago to invest in mezzanine debt, has lined up some lifelines. According to MarketWatch, it just announced a deal that calls for seven institutions to invest $230 million. Farallon Capital Management, Fir Tree Partners, JGE Capital Management, Marsico Capital Management, Morgan Stanley are on the list. KKR Financial plans to issue $270 million worth of rights to common stock to existing shareholders. Hopefully, that will do the trick, but you never know.  

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