PIK interest is the interest on a bond or a loan that is paid in kind instead of cash, by issuing new debt that adds up to the principal to be paid at maturity .
In finance, PIK (Payment-In-Kind) describes the interest on a bond or a loan that is paid with additional debt instead of cash, by issuing new debt that adds up to the principal to be paid at maturity.
In finance, the term balloon is used to describe a financing structure in which there is no amortizing of principal. With a balloon structure, only the interest is paid periodically, while the principal is paid back fully at maturity, the so called balloon payment.
Exchange Traded Notes (ETNs) are unsecured senior bond issued by financial institutions whose return is linked to a given index or basket of securities. Exchange Traded Notes do not pay a periodic coupon but reflect the value of the index at maturity. Exchange Traded Notes are exposed to the credit risk of the issuer, that is the risk that the financial institution who issued the Exchange Traded Notes is no able to pay them back at maturity. Exchange Traded Notes are bought and sold on a regulated exchange.
In finance, ETNs (Exchange Traded Notes) are unsecured senior bond issued by financial institutions whose return is linked to a given index or basket of securities. ETNs do not pay a periodic coupon but reflect the value of the index at maturity. ETNs are exposed to the credit risk of the issuer, that is the risk that the financial institution who issued the ETNs is no able to pay them back at maturity. ETNs are bought and sold on a regulated exchange.