Rick Shane: Thanks for taking my questions this morning guys. Most have been asked and answered. But I did want to ask the restricted cash on the balance sheet came down sharply. What drives that just so we understand it?
Paul Elenio: Hi Rick, it’s Paul. So, a couple of things. One, we had one vehicle, we were de-levering. And as you may have seen, we called one of the vehicles during the quarter and took out one of our CLOs. But as runoff is occurring in certain vehicles that may be past their replenishment period, you can – that restricted cash goes down to pay debt. That happened during the quarter in the vehicle that we retired and one of the vehicles we are de-levering. And then just generally, when there is loan runoff, if you can put loans in from your balance sheet book that are on your repo lines, into the CLOs then you are chewing up restricted cash. So, we have seen a little bit of more efficiency this quarter in moving loans off our balance sheet, de-levering and putting them into vehicles and then you have got the natural wind down of a couple of vehicles that starts to reduce restricted cash.
That restricted cash ends up coming into corporate cash, but that’s the natural progression of why that number has changed this quarter.
Rick Shane: Got it. Okay. That’s very helpful. Thank you. And then I would love to circle back on Jade’s question about the mods and extensions. And he said at a 15% number and Ivan, understandably, you kind of said that number moves around. Can we just get some context of sort of during the second quarter the value – the notional value of loans that were modified and extended both on the balance sheet and within the CLOs?
Ivan Kaufman: Yes, I don’t have that offhand. And it is a fluid process between extensions and modifications, and it’s something that we could take a look at the data. It’s just something that’s constantly changing.
Paul Elenio: Yes. I don’t have it in front of me, Rick, but my recollection is it wasn’t very significant at all this quarter, but that could change. It all depends on the cycle and where we are, but we haven’t seen significant modifications that I am aware of in either of those vehicles to-date.
Rick Shane: Got it. And then last question for me. Ivan, you have talked about the next two quarters to three quarters being the most challenging. You have also spoken of sort of the fluidity of what’s going on. Just curious what you are seeing in terms of loan performance in July.
Ivan Kaufman: I think when we are talking about it, we are not even talking about June, we are talking about where we are today. I don’t really reflect on that as a June conversation, a reflect on it as of timing as of the moment and what we are in the middle of. So, it’s pretty much along my comments and how it looks is that we should have somewhat of, as Paul mentioned, the continuation in terms of reserves and outlook for the third and fourth quarters, similar to what we had in the second quarter.
Rick Shane: Thank you guys very much. I appreciate it.
Ivan Kaufman: Thanks Rick.
Operator: Thank you. We will take our next question from Leon Cooperman with Omega Family Office.
Leon Cooperman: Let me just first say, I congratulate you on your performance. I have been investing in the company for about a decade. In the last couple of years, you have spoken to me very conservatively assessing the outlook and I think the company’s performance is not an accident, it’s a result of your positioning, and I congratulate you on your correct reading of the environment.
Ivan Kaufman: Thank you, Leon.
