This chapter explores the intricate issues related to the reporting of synthetic picks in private credit, focusing on the balance between lender disclosure and the clarity needed for limited partners. It highlights the importance of transparency in financial communications and the proactive role LPs must take in seeking understanding.
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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