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PIK
Aidan Hamade avatar
Written by Aidan Hamade
Updated over a week ago

A Payment-In-Kind (PIK) bond is a type of security that pays interest to bondholders by issuing more bonds, rather than paying cash. Some PIK bonds pay interest as a blend of new bonds and cash. PIK-toggle bonds give the issuer the option to elect if they want to pay an interest payment in bonds or cash.

In all PIK bonds, deferred payments must be settled by the bond's maturity.

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