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Private Credit: PIK Interest and Junior Debt in BDC Books
Share of BDC debt at cost, %
Plays the chart through its history. Pauses are where the data set a record or moved most.
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Palanor calculation from SEC schedules of investments filed by business development companies (SEC BDC data sets and EDGAR XBRL; public domain). The panel is every BDC whose tagged holdings add up to its reported total; it grows as new funds file. Debt only: loans and bonds at cost.
Two ways a loan book takes more risk: interest the borrower adds to the loan instead of paying in cash (PIK), and debt that is paid after the senior lenders. A rising PIK share can mean borrowers are short of cash, or that lenders wrote more loans with PIK from the start.
What this chart reads
- Share of BDC debt paying interest in kind (PIK)as “Paying some interest in kind (PIK)”latest 2026-06-30
- Second-lien and subordinated share of BDC debtas “Second lien and subordinated”latest 2026-06-30
- Second-lien share of BDC debtas “Second lien”latest 2026-06-30
Sources
Share of BDC debt paying interest in kind (PIK). Source: Palanor calculation from SEC filings: the SEC Business Development Company (BDC) data sets and each filing's XBRL on EDGAR (U.S. Securities and Exchange Commission; public domain).
Second-lien and subordinated share of BDC debt. Source: Palanor calculation from SEC filings: the SEC Business Development Company (BDC) data sets and each filing's XBRL on EDGAR (U.S. Securities and Exchange Commission; public domain).
Second-lien share of BDC debt. Source: Palanor calculation from SEC filings: the SEC Business Development Company (BDC) data sets and each filing's XBRL on EDGAR (U.S. Securities and Exchange Commission; public domain).
Charts are drawn from Palanor's signal library and recomputed from source data on every view. Transformations (changes, indexing, year-on-year rates) are Palanor's.