And again, we have the liquidity to handle those situations. The more recent ones that have had some maturity default issues, the three that we mentioned since year-end. Again, it’s a mixture of loans that are either in warehouse lines or in our CLOs. But, again, given our liquidity situation, as well as the diversification of financing vehicles that we utilize. As you know, we have two different CLOs. We have five different line lenders and we make sure that we have diversification by those financing vehicles. So we’re in a pretty good spot to be able to deal with the leverage of our senior loans that are risk-weighted 4s at this point.
Bryan Donohoe: Yes. Maybe, I’ll just add one thing to Jade’s question, just some specificity around it. You can assume roughly half of those risk-weighted four or five loans are unlevered. And I think that speaks to the approach we’ve consistently taken as Tae-Sik was outlining.
Jade Rahmani: Unlevered including both CLO and credit facility?
Bryan Donohoe: That’s correct.
Jade Rahmani: Thank you very much.
Bryan Donohoe: Thanks.
Tae-Sik Yoon: Thank you, Jade.
Operator: Thank you. The next question today comes from the line of Rick Shane from JPMorgan. Please, go ahead. Your line is now open.
Rick Shane: Thanks, everybody, for taking my question and hope everybody is well. So when we look at the K, what you disclosed is that, at the end of the fourth quarter there were $45 million on non-accrual. As you also discussed on this call and in the K, there’s an incremental $150 million of maturity defaults at the beginning of this quarter. I’m curious, if that the $150 million is additive to the $45 million of non-accruals, or is some of the — that $150 million already on non-accrual.
Tae-Sik Yoon: Hi, there. So I will take the — yes. Thanks, Byran. Yes. Rick. So the loans that are on non-accrual as of 12/31 2022 does not include any loans that we mentioned the three loans that went into default in the first quarter of 2023. So we will, obviously, continue to evaluate those loans. We certainly evaluated them as of 12/31 2022. Obviously we’ve now had a subsequent event to that. So we will evaluate it. But to answer your question, so none of the non-accrual loans as of 12/31 2022 included the three loans that subsequently went into default.
Rick Shane: Got it. And not to be too cute here, but when I read the accounting policy, it doesn’t sound like there’s any discretion on defaulted loans for non-accrual. But those — unless there’s a resolution by quarter end, that $150 million will be on non-accrual correct?
Tae-Sik Yoon: Yes. Again, I think, we will look at each situation. Basically, we have historically put loans that have — some of the loans that are on non-accrual have not been in default and we’re still paying interest. And so I think going forward we will certainly evaluate these three loans that are now in maturity defaults, as well as any other loans. And, again, there is time between now and end of the quarter to work with each of the situations. Again, each situation is quite unique. But we will continue to work with each of the three situations. So I do think it’s too early to maybe make a forecast or some sort of estimate of the non-accrual status potentially of those three loans that are in maturity default today. But, again, we will certainly work through very carefully all three situations and make the proper assessment at quarter end — at the end of first quarter.
