Public Income Notes - PINES

If you need a quick infusion of cash, you might go to your Uncle Earl. Companies don’t typically have that option. Instead, they have debt securities, including PINES.

Similar to QUIPS and MIPS (which sound like the names of pixie tribes from some fantasy novel series), PINES get issued by public companies. They trade on stock exchanges, but (unlike stock) they also carry an interest rate, making them more like bonds.

The debt involved is unsecured (meaning it's not backed by any specific asset), kind of like your credit card balance. However, the PINES are also unsubordinated, meaning that, in the case of a financial crisis for the issuing companies, they get paid back before any subordinated debt. It makes them less risky than other forms of debt issuance.