Offerings of paid-in-kind (PIK) notes (interest payments are made with more bonds, not cash) of...

|By:, SA News Editor

Offerings of paid-in-kind (PIK) notes (interest payments are made with more bonds, not cash) of $2.1B in just the last 30 days account for more than one-third of the entire year's issuance. "You only hear about PIK bonds when the high-yield markets are really frothy," says a fixed-income fund manager.