In an interview with LevFin Insights, Timothy Kang and Chris Cessna, Directors and co-leads of Houlihan Lokey’s private credit valuation services, discussed the recent increase in payment-in-kind (PIK) interest for BDCs’ underlying loan assets, the market conditions behind this increase, and whether the shift away from cash interest to PIK interest is a cause for concern among investors.
Read the Q&A here on CreditSights.