Payment in Kind Risks
Concerns arise as private credit firms face rising payment in kind (PIC) deals, indicating potential struggles with debt servicing. When companies can’t meet original terms, they may resort to accruing unpaid interest as an IOU, which can signal deeper financial issues. While PIC can be beneficial if structured properly, a significant increase in these deals may serve as a warning sign for investors.In this clip
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Animal Spirits Podcast
Talk Your Book: The Private Credit Opportunity Set
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