PIK Interest Explained: Benefits, Risks and Private Credit
A borrower can reduce its cash interest burden today while simultaneously increasing the amount it owes tomorrow. That is the central paradox behind PIK interest, or payment-in-kind interest, a financing mechanism that allows borrowers to defer some or all of their interest payments by adding the accrued amount to the outstanding loan balance. The structure […]
The Private Credit Reset: Why Investors Are Repricing the Risk of Direct Lending
The private-credit boom is entering a more uncomfortable phase: capital is still arriving, but investors are paying much closer attention to what the loans underneath the yield are actually worth. That contradiction was highlighted this week when Tether and Fasanara Capital launched StableFund, a new private-credit vehicle anchored by $400 million of co-investment and targeting […]
