This chapter explores the dynamics of private credit markets, emphasizing synthetic PIK instruments and their distinct risk profiles. It also addresses the influence of interest rates and emerging M&A activities on the evolving landscape of private credit.
One of the strengths of private credit is its flexibility. And who doesn’t love to PIK and choose?
In this week’s episode of Cloud 9fin, US private credit editor David Brooke asks senior reporter Shubham Saharan to add another contribution to the ever-evolving private credit glossary as they dive into the definition of synthetic PIKs. Listen in to learn about what these instruments are, how they’re being used by the industry, and whether they’re likely to become a passing trend or an emerging staple.
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