In the latest edition of CIFC’s Portfolio Intelligence series, we examine the role of PIK in direct lending and what its use can indicate about deal structure and borrower fundamentals.
"In our opinion, investors should look beneath the numbers to understand portfolio composition and select a manager with the experience and discipline to use PIK responsibly, structure loans appropriately, and maximize current cash yield."
The analysis explores how deferred interest, leverage dynamics, and structural differences across market segments intersect in ways that may influence credit risk.