The types of companies that issue these bonds may be financially distressed and their bonds may have low ratings but pay interest at a higher rate. Because payment-in-kind bonds are an unusual and high-risk product, they appeal mainly to sophisticated investors such as hedge funds. Investors seeking cash flow should not purchase payment-in-kind bonds.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
payment-in-kind securities — Also: PIK securities Highly bonds or preferred stock that pay interest or dividends through additional bonds or preferred stock. Bloomberg Financial Dictionary … Financial and business terms
Payment-In-Kind (PIK) bond — A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds. The New York Times Financial Glossary … Financial and business terms
payment-in-kind bond — abbr. PIK bond; PIK A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds. Bloomberg Financial Dictionary … Financial and business terms
payment — The amount required to repay a loan, including interest and fees. Bloomberg Financial Dictionary * * * payment pay‧ment [ˈpeɪmənt] noun 1. [countable, uncountable] FINANCE an amount of money that must be or has been paid, or the act of paying it … Financial and business terms
in kind — ► used to describe a payment that is given in the form of goods or services and not in the form of money: »Payment in kind involves investors receiving more bonds in place of cash interest. »At least part of their salary is paid in kind. Main… … Financial and business terms
international payment and exchange — ▪ economics Introduction international exchange also called foreign exchange respectively, any payment made by one country to another and the market in which national currencies are bought and sold by those who require them for such… … Universalium
in kind — adj. Of the same kind, category, or type; used to describe the act of exchanging one thing for another thing of the same or similar type. adv. in kind The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney… … Law dictionary
Like-kind exchange — A like kind exchange is a United States tax deferred exchange that allows for the disposal of an asset and the acquisition of another similar asset without generating a tax liability from the sale of the first asset. A like kind exchange can… … Wikipedia
china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material … Universalium
China — /chuy neuh/, n. 1. People s Republic of, a country in E Asia. 1,221,591,778; 3,691,502 sq. mi. (9,560,990 sq. km). Cap.: Beijing. 2. Republic of. Also called Nationalist China. a republic consisting mainly of the island of Taiwan off the SE coast … Universalium