Rising PIK loans and tighter spreads raise stress risks for private credit
AI Summary- Kanav Kalia flagged rising PIK loans and tighter BDC spreads as private-credit stress indicators.
- PIK loans represent roughly 10% of BDC portfolios, compared with about 5% in 2022 or 2023.
- Banks provide roughly 40% of BDC leverage, up from about 20% a decade ago.