And so it’s more about how much production can we do, we’re really focused on trying to get a production up, because the fact of the matter is, we know that we’re in a very positive, we have a competitive advantage on that side. On the DSCR side, same thing that, what we’re seeing is there’s an insatiable demand by insurance companies for a DSCR product as a whole, there’s competition, but there’s a lot of originators, who aren’t structured properly. And so they’re getting washed out. So on a term side; we feel a bit a little bit more competition than we do on the RTL side. But the fact is the market shaken out people right now and it’s just give us more pricing power. So that, I think we’re positioned right. The markets turbulence lately is causing us to be in a position of strength.
So that goes to saying that we’re very much focused on our production. Our goal right now, we have the right counterparties in place, we’re talking to other counterparties you’re going to be value add. It’s, it’s simply this point, how much effort do we have to put in to get our production to where it needs to be? And we have those three channels. The channels, our director, borrower, wholesale, and then surely broker channel. So does it help Matt.
Matthew Howlett: Absolutely. Look incredible margins, nonetheless, and I really appreciate all the context switches.
Jason Kopcak: Thank you.
Operator: Thank you. And we’ll take our next question from Jeff Moore, Burr Oak Capital.
Jeffrey Moore: How — with rising rates, and a lot of the bank failures that are happening, how, how does that affect your model? And then if lending freezes up with banks? What do you think you’ll be able to do with origination and sales. Do you, is this a better environment for you? Is it a worse environment? Kind of what are your general thoughts on that?
Jason Kopcak: Yes, look, great question. A similar one I mentioned to Matt. When the banks like right now we’re going into a tough environment for banks, they have a tendency to lend less. So you’ll see their lending pulls back. And so with that being said, that’s a positive for us. The more that the peripheral banks pullback, the Street firms are in love with this space just because they don’t quite understand it. So the fact that matters is there’s less competition, it gives us more pricing power. This is a natural product. The insurance companies love the product; the insurance companies can’t get enough of it. And frankly, I’ve had plenty conversations the insurance companies know they’re in the driver’s seat right now. They know it.
And so to your — to answer your question is in this environment it long-term it’s very beneficial for us. This puts us it weeds out some of the weaker players. It allows us to take more market share, gives us more pricing power, and it allows us to build out our process. So it’s it’s a win win for us. On the street, the one thing you learn, one thing I’ve learned over my 15 years and working on the street is volatility creates opportunity. At the end of the day, there are people who are heading for the sidelines. But, being very experienced this is a market that creates opportunity. It’s very important for us to capitalize on the volatility and it’s, again, it’s a great opportunity for us. Our product is a natural hedge. It’s again; it’s a high yield product short duration that resets often.
The underlying is always improving over the life of the loan, and it has a lot of enhancement to it. So it’s a natural hedge that what you — what would you rather have? You rather have a more, bonnet at 350 basis points, or would you rather have a loan book at 11% that has 30 points of equity that when you’re done with it, it has 40 or 45 points of equity. It’s a no brainer.