// definition
PIK
Payment In Kind
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Short definition
Interest paid not in cash but in additional debt. A signal of strain on the borrower's cash position.
risk atlas
Knowledge map
Intuition
PIK turns an unpaid interest payment into additional debt. It relieves cash today and weighs on the balance sheet tomorrow.
Formula
future debt = current debt + capitalised interestWhy it matters now
A rise in PIK signals that borrowers are preserving cash at the price of a deferred default risk.
Related analyses
- Private credit, default and gatingDefaults, capped redemptions and regulator vigilance.
- The silent contagion of private creditBridges between banks, insurers, BDCs, crypto and stablecoins.
- Zombie funds and private valuationsPrivate marks, hard exits and the illusion of stability.
Related guides
- Analysing private creditValuation, liquidity, leverage, covenants and breaking points.
Related datasets
- debt-risk.jsonDebt Risk Radar snapshot with provenance.
- risk-diff.json1, 7 and 30-day diff of signals, sources and models.
- evidence-graph.jsonClaims, evidence and their sources as a graph.
- catalog.jsonMachine-readable catalogue of l0g surfaces.
Signals using it
- MethodologyDebt, interest burden, current stress and structural vulnerability.
- Risk DiffRecent change in risk and source freshness.
- Black Box RecorderHashed frames to replay a point-in-time state.
Primary sources
- SEC EDGARBDC filings, 10-K, 10-Q, 8-K and institutional disclosures.
- Financial Stability Board & OFRNon-bank intermediation, financial stability and monitors.
- International Monetary FundGlobal Financial Stability Report and funding stress.
- Bank for International SettlementsGlobal credit, NBFI and market vulnerabilities.