This chapter delves into synthetic Payment In Kind (PIK) instruments, highlighting their growing importance in a high-interest-rate environment. The speakers discuss the advantages and challenges of PIKs for borrowers, alongside relevant macroeconomic trends.
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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