Brad Marshall: Yes, you’re seeing that now, because you’re right to point out with higher interest expense. Your companies are being set up with less leverage, in order to service their debt appropriately. So you saw that a little bit in the quarter, average loan to value was 35.9% versus our historical LTV which is in the kind of mid-40s. So you’re seeing companies put on less leverage. And yes, in some cases you’re seeing a preferred equity piece get put in behind the senior debt. In order to kind of help the equity sponsor fund some of these transactions, but this is, I’m glad you pointed out because it’s what we get excited about in this environment is you’re seeing more yield, so more return primarily because of base rates.
But you’re also seeing better companies come to market, with less leverage and lower loan to value. So more return and less risk is kind of how we think about it and it will drive our portfolio construction going forward because you don’t actually need to take a lot of risk in this market to get a very attractive return relative to most other asset classes.
Robert Dodd: Got it. Thank you.
Operator: We will go next to Kenneth Lee with RBC.
Kenneth Lee: Hi, good morning and thanks for taking my question. Just one on the potential implications of the integration of the Blackstone credit and insurance platform. How do you think about potential changes in the portfolio mix or originations overtime based on their integration? Thanks.
Brad Marshall: So appreciate the question, Ken. So I don’t think it has any implications for portfolio construction, what it does for us. It gives us a bigger team with more exposure to sponsors with more exposure to corporates. Because at the end of the day, what we’re offering these clients is more solutions. BXSL will continue to be focused on senior secured corporate credit, top of the capital structure, a very kind of simple strategy, but when we’re out facing clients, we’re that much more relevant to them because we can do an asset based facility, we can do something more junior in the capital structure, we have more points of connectivity, more people, more scale, more resources and that’s the power of the BXSL integration. As you look at the private credit asset class expanding those managers that can provide multiple solutions will become more relevant to our end clients.
Kenneth Lee: Got it. Very helpful there. And just one follow-up, if I may. In terms of the some of the recent deal activity in terms of some of the newer investments. Could you just talk a little bit more about trends that you’re seeing in terms of deal terms, docks protections? Just wondering if there’s been any changes there? Thanks.
Brad Marshall: Well, I would say a couple of things. Spreads have come in a little bit over the course of the year, but I attribute that more to what I was saying earlier, which the risk has gone down as rates are look like they’re going to stay higher longer. Capital structures are being set up with less leverage and therefore you know spreads have come in a little bit, which is a trade that we will take all day. So that’s maybe one trend. You know the public markets were briefly open now they’re they feel a little bit shaky again. So that gives us a lot more leverage as it relates to negotiating docs, especially for the larger deals, one of which Carlos highlighted on in his prepared remarks. So I would say by and large it’s very, very attractive both from a return for level of risk and from a documentation standpoint.
Kenneth Lee: Got it. Very helpful there. Thanks again.
Operator: We will go next to Paul Johnson with KBW.
Paul Johnson: Hey, good morning, guys. Thanks for taking my questions. Just kind of adding on a little bit Ken’s last question, I mean, how long do you think the terms that you guys are seeing today can I guess be sustained in the market? I mean, I guess in addition to that, I mean. What is it that you – do you think that would probably, start to threaten that a little bit in the is it all predicated on the CLO market kind of returning or what – how long do I guess do you guys think the private market can keep up what’s going on today?
