Credit Calls

Research evidence excerpt

Credit Calls

J P M O R G A N North America Credit Research

16 June 2026

Tuesday, June 16, 2026

Strategy & Sector Commentary Head of North America Credit

Research and Strategy

BDCs: PIKing into PIK: BDC 1Q’26 PIK Report (Kabir Caprihan, CFA) AC Tarek Hamid

As we do each quarter, we dive into PIK portfolios to understand "good vs. bad

(1-212) 834-5468

PIK." See our prior reports (here,here,here, and here). The conversation around tarek.x.hamid@jpmorgan.com

PIK has become less of a reported topic compared to the past as software and J.P. Morgan Securities LLC

redemptions have received more attention from the mainstream media. With that

said, we still believe PIK is a very important detail for BDCs and one of the most

accurate ways to forecast stress within a BDC portfolio. As a reminder, our Credit Calls is our daily compilation of

definition of bad PIK remains very objective – any PIK loan marked below 90% research reports from High Grade and

we view as bad PIK. We understand that skeptics will question the BDC's marking High Yield corporate credit analysts

methodology, but that is a separate discussion and one with which we have become and strategists.

very comfortable with over the years. Also note that we don’t include non-accrual

loans in our PIK analysis. We believe that non-accrual loans are already captured High Grade Home Page

in the asset quality section. This report is more about the data and we present the

High Yield Home Pagesummary and individual performance in the following pages.

Daily Economic Briefing

HG Credit Foreign Demand Monitor: FAB index stable into key central bank Link to US Equity Research Top Stories

week; TWD ETF outflows at 3m high (Nathaniel Rosenbaum, CFA / Silvi (updated 7:30am)

Mantri) Link to J.P. Morgan Markets page