Paul Elenio: Sure, Steve, thanks. So we do look at this in a very detailed level. A lot of the reserve building you’re seeing is from stress in the portfolio, as Ivan said, and what we think could happen over the next couple of quarters. A lot of it’s the macroeconomic view out there on commercial real estate. We obviously think we have adequate reserves today. We built $48 million of reserves across our platform, both on the agency and the balance sheet side in the last two quarters. But I think it’s a great question, and I think I don’t know what others are saying out there in our space, but I do expect over the next couple of quarters to continue to see reserve building, maybe similar to where we were this quarter, maybe a little higher, maybe a little lower, but that’s my expectation.
Obviously, we will see where rates go and what happens in the market. But my expectation is that there will be some reserve building over the next two to three quarters, probably consistent or slightly consistent to where we were in the last couple of quarters. Ivan, would you agree with that?
Ivan Kaufman: Yes. And I think it’s extraordinarily important to focus on the fact that as we’ve put reserves on the books, we’ve maintained our book value, and we haven’t had our book value and our cushion between our dividend and our earnings is so large and as I mentioned in my comments, that’s always been very critical to us and the Board to make sure that we have that knowing we’re going into a recession and now we’re going into a difficult environment, it’s normal to have reserves. I think the fact that we’re able to create these reserves which are against future losses and that decrease our book value and maintain it is remarkable and a real testament to how we’ve managed through the cycle. But I do agree with Paul. I do think that what we’ve seen in this quarter could continue for another quarter or two. And our balance sheet is well positioned.
Stephen Laws: Great. Thanks for the comment, Ivan.
Ivan Kaufman: Thanks, Steve.
Operator: Thank you. We will take our next question from Crispin Love with Piper Sandler.
Crispin Love: Thanks. Good morning. Appreciate for taking my questions. First, can you just speak to your ability to roll your repo facilities that are coming up? And then just what percent of your loans have interest rate caps right now?
Ivan Kaufman: Yes. I mean the repo facilities and that a major concern with us is very diversified and they have come down dramatically. And we’ve continued to renew them in fact, the banks are more aggressive to want to do business with them as the outstands keep coming down. And as you’re watching the securitization market, the securitization market is returning, the CLO market is returning. We’re not far from readdressing some of that and even bringing our outstandings at our bank down and continue to meet with management and treasury with the different institutions. And they are aggressive to continue to have more outstanding. So that’s the least of our issues, and if we look at our outstandings on repo and our ratios are extremely healthy.
So we feel really good about it, and we feel really good about accessing the CLO market and actually creating greater efficiencies than we have today, and we’re pretty efficient. So that’s our view on that. With respect to caps and everything, Paul, you can address I can give us some commentary as well.
