Emotional intelligence and PIK notes: Difference between pages

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imported>Doug Williamson
(Link with Unsecured debt.)
 
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Emotional intelligence includes the ability to identify and manage our own emotions, and to work effectively with the emotions of other people.  
Debt instruments based on non-cash payment of interest coupons.


Interest is usually recognised by an increase in the amount of principal owed by the borrower.


The concept was popularised by Daniel Goleman in his 1995 book ''Emotional intelligence''.


It is sometimes abbreviated to 'IE' or 'EQ' (Emotional Quotient).
PIKs are generally either unsecured loans or deeply subordinated securities ranking just before equity in the capital structure.  


This means that, in the event of a bankruptcy, PIKs are the last debts to be repaid, making them a high risk instrument for lenders and investors.


Emotional intelligence comprises three related skills:
In order to compensate lenders for the risk, PIKs have to offer significantly enhanced rates of return to investors.


#Emotional awareness, including the ability to identify our own emotions and those of others.
#The ability to harness emotions, and apply them to tasks like thinking and problem-solving.
#The ability to manage emotions, including the ability to regulate our own emotions, and to influence the emotions of other people.


 
== See also ==
==See also==
* [[Coupon]]
* [[ACT Competency Framework]]
* [[Equity]]
* [[Agile]]
* [[Interest]]
* [[Behavioural skills]]
* [[Notes]]
* [[Gravitas]]
* [[Payment in kind]]
* [[Working effectively with others]]
* [[Principal]]
* [[Secured debt]]
* [[Subordinated debt]]
* [[Unsecured debt]]

Revision as of 14:21, 22 August 2017

Debt instruments based on non-cash payment of interest coupons.

Interest is usually recognised by an increase in the amount of principal owed by the borrower.


PIKs are generally either unsecured loans or deeply subordinated securities ranking just before equity in the capital structure.

This means that, in the event of a bankruptcy, PIKs are the last debts to be repaid, making them a high risk instrument for lenders and investors.

In order to compensate lenders for the risk, PIKs have to offer significantly enhanced rates of return to investors.


See also

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