MRCC Update: PIK Income Is A Red Flag
Summary
During Q4 2020, there was a meaningful increase in the amount of PIK income from 12.8% to 33.4% of interest income.
This is typically a sign that portfolio companies are not able to pay interest expense in cash and could imply potential credit issues over the coming quarters.
Q4 2020 earnings would have been around $0.196 per share without the bene…