And again, pretty consensual and constructive and getting to a point that worked for all three parties, given that everybody held para pursue interests. And as a result, you need to get to a point where something works for everybody. So again, I appreciate the question. And, you know, nothing has come up on our radar screen and doing this for 14 years now that that leaves us overly concerned about the ability to resolve things.
Eric Hagen: Yes. That’s helpful. Thank you, guys, very much.
Operator: Thank you. One moment for our next question. And that will come from the line of Rick Shane with JPMorgan. Your line is open.
Rick Shane: Hey, everybody, thanks for taking my question. Steve Delaney made an important observation in terms of spread income. And frankly, in some ways, the wider spreads are offsetting some of the impact of credit. But when we think about that, to some extent, that’s been for borrowers, so far relatively free, because they’ve enjoyed rate caps on their loans. I’m wondering as we move into an environment where loans are extending, and some of those caps are expiring, how you think about that, and how you work with your borrowers to mitigate the risk from higher rates that will start to impact them now.
Stuart Rothstein: Good question, Rick. Look, the short answer is, there are no extensions without the purchase of a rate cap to cover the remaining term of a loan. I think you highlight an important issue, which is beyond potentially rebalancing the loan balance of a loan. The increased cost of caps is certainly another challenge for owners/borrowers these days, I would say in certain instances where you’ve heard me refer to pay downs in exchange for extensions in a consensual fashion. You should assume that when I say pay downs, I am referring to both principle pay down and the purchase of additional caps as necessary. And you can also infer from my comments that, at times, the capital necessary to do that might not come from the original borrower, but it might actually come from capital that’s willing to take a mezzanine piece or a preferred piece in between our original borrower and our senior position.
Rick Shane: Got it. Okay. That’s helpful. And again, remember, we’re not in the market shopping for caps, can you give us some context on, take $100 million notional, what a transaction would have caught what a cap might have cost three years ago, and what it would look like versus what it might cost to that.
Stuart Rothstein: Not exact numbers, but I would say ballpark hundreds of, 1000s of dollars versus millions of dollars today.
Rick Shane: Okay. That’s helpful. Thank you, guys.
Operator: Thank you. One moment for our next question. And we do have a follow up question from Jade Rahmani with KBW. Your line is open.
Jade Rahmani: Thank you very much. With the stock down around 5% today, and the strong distributable earnings ex-credit items? No, it seems the markets not overly concerned or shouldn’t be overly concerned about dividend coverage. That’s not really the issue. However, book value did decline by around two and a half percent. And there was a further reserve on 111, West 57. That loan still seems to be I would assume the major issue that the market is concerned about. So can you just remind us I know that you made some initial comments in the opening about the methodology there. But what’s the last dollar basis? The junior mezzanine, a, position and the senior mezzanine position, they’re very large, both north of 190 million. So ignoring the junior mezzanine b position, which now has been written down to 15.5 million, the what’s the last dollar basis or what’s a way to think about and get confidence with the approach to you know, coverage on that position?
Stuart Rothstein: You’re talking about the senior loan and the senior mezz position. Jade, I’m just on a €“
