So that’s, kind of, what we focus on with respect to leverage in an inverted curve environment is just, you know, what is the hedged return? Is it better or worse than the last time we put capital to work? But if the curve steepens, that is a massively positive tailwind for [dialects] (ph) and really anyone who’s operating a levered position, so we see that as an extremely positive thing. And what we would want to do is position for that in advance by taking hedges off, actually, so you can take advantage of that, that steepening in the yield curve. But in general, the decision to take up leverage or not is really based on two things. One is what is the marginal return. Two, is what’s the global risk environment and how comfortable are we doing that?
Any type of green shoots or signals that we’re going to see that pushes us in a steep curve direction would be a scenario where I think we’d be more comfortable running higher levels of leverage. So I hope that gives you a sense for like the decision thought process.
Eric Hagen: Yes. Thank you for articulating. That was helpful. Maybe one on the hedge gains that you’re harvesting for tax purposes. Do you feel like that has any bearing on how you manage the portfolio? Or do you feel like is the message here that the near-term tax burden really isn’t very significant even though the gain, sort of, stands out?
Smriti Popenoe: I would say there’s two things, because the EAD doesn’t reflect the hedge gain or the hedging activity, you’ve got to include the hedge gain period, right? So that’s how you factor that in. I think there’s a slide page six on the deck that basically says, look, funding costs are going up, but they’re offset by these hedge gains and here they are. I’m going to let Rob answer the question with respect to the distributable income for tax purposes, I think that’s a different question. You should answer that.
Rob Colligan: Sure. Yes, thanks for the question. I don’t think we’re managing the book for a tax result. Maybe answer your question super directly. And you heard a lot of color from Smriti today on how she’s managing, how she’s thinking about the book, how we’re thinking about leverage. But we keep putting information in on the hedges, because it’s a big number. It has to be accounted for. It has to be part of the analytics. It has to be part of your review. And it has helped us manage rising repo costs and financing costs. And will continue to be a benefit for us, you know, for years to come. So factoring that in your analysis and projections is important, and we want to provide a lot of transparency around what we’ve done, how we’ve done it, and not only the impact from a GAAP accounting perspective, but tax and distribution requirement as well. So if there’s other questions or if anyone needs more information around that, we’d be happy to share.
Eric Hagen: Yes. That’s helpful. Thank you guys very much.
Smriti Popenoe: You’re welcome.
Operator: There are no further questions at this time. I’ll now turn the call back over to Byron Boston for any additional or closing remarks.
Byron Boston: Thank you very much, and thank you all for joining us for our conference call. We’ll clearly look forward to seeing you again next quarter. And just keep in mind, Dynex is prepared. We’re preparing, and we really appreciate the opportunity to manage your capital. Thank you very much.
Operator: This does conclude today’s conference call. You may now disconnect.
