Payment-In-Kind Bond

0.01 sec.

A bond in which coupon payments come in the form of more bonds, rather than cash. At times, the investor has the option of choosing whether to accept cash or payment-in-kind, but more often this option resides with the issuer. A problem with PIK bonds for the issuer is the fact that it becomes tempting to pay coupons with more debt rather than cash when the company has a liquidity problem. Of course, doing this often only adds to the issuer's liquidity problems. This type of bond was not unusual during the private equity boom in the mid-2000s, but became rare during the credit crunch at the end of the decade.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
No references found			Payable-on-Death Payables Payback payback period Payday Loan Paydown Paydown Factor Payee Payer Paygo Paying Agent payment Payment Adjustment Cap Payment Adjustment Interval payment cap Payment Date Payment Float Payment for Order Flow Payment In-Kind Payment Period Payment Problems Payment Protection Insurance Payment Shock Payment System Payment-In-Kind Payment-In-Kind Bond Payment-in-Kind Security Payments Netting Payments Pattern Payments System payoff Payoff diagram Payoff Month Payoff Profile Payout Period Payout Phase Payout Ratio Payroll Tax Pays accable par la dette Pays creancier Pays en developpement Payup PBGC PBR PC PCAOB PCBs PCE PCX PE Peace Dividend			payment service Payment Service Hub Payment service provider Payment Services Directive Payment Settlement Message Notification Payment Settlement Message Request Payment Shock Payment Solutions Company Payment system Payment Systems Payment Systems and Netting Act Payment Systems for Credit Unions, Inc. Payment terminal Payment terminal Payment terminal Payment Terminal Security Program Payment to Income Payment Transaction Technologies Sendirian Berhad Payment With Order Payment, Balance of Payment, Balance of Payment, Balance of Payment, Clearing and Settlement System Payment, Demand for Payment, Demand for Payment, Treatment or Operations Payment-Equal-To-Taxes Payment-in-kind Payment-In-Kind Bond Payment-In-Kind Bonds Payment-in-Kind Securities payment-in-kind security payments payments payments payments Payments Agreement, Intergovernmental Payments and Cash Management Payments and Progress Payments Association of South Africa Payments in Advance Payments in Advance Payments in Advance Payments in Advance Payments Market Practice Group Payments netting Payments Outstanding Suspense Account payments past due Payments pattern Payments Patterns Payments system Payments System Policy Advisory Committee Payments Systems Task Force payments withheld Payments, Balance of Payments, Balance of Payments, Balance of Payments, Claims, and Enhanced Reconciliation Payn

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.