Robert Dodd: Got it. Thank you. And then just kind of parallel to the spread compression; usually, when a spread compression is not the only thing lenders are giving up. But so the weighted average upfront fee was down a little bit in the quarter as well, but also typically structures, covenant packages, et cetera, have some losses in rigorousness in an environment like this. Can you give us any color on how dramatically is that shifting, if at all? Is that more of a concern than the spread compression? Or is the spread compression or you said that’s the primary worry right now in public credit, but that’s a near-term phenomenon, if the structures weaken to the point that future credit becomes a risk. I mean any thoughts there?
David Golub: So I think you make a very important point, which is you’re right that, generally speaking we’re either – we’re always either in an environment where the pendulum is moving toward more borrower-friendly or more lender-friendly. And when it’s moving in the direction of more borrower-friendly, it tends not to move just in terms of spread it also tends to move in terms of documentation terms, in terms of leverage, in terms of structure. I emphasize spread in my comments today because I think that’s the area we’ve seen the most significant movement. And I think that all of these changes highlight another really important point, which is origination strength is going to become a larger and larger source of differentiation amongst managers.
What I mean by that is managers who have large portfolios with a lot of incumbency opportunities who have particularly strong relationships with sponsors, who have scale and depth of expertise, they’re going to be able to navigate this coming environment much – with much more aplomb than folks who don’t have those kinds of advantages because this is the kind of environment where it gets harder to find attractive loans.
Robert Dodd: Understood. Thank you.
Operator: [Operator Instructions] Your next question comes from the line of Paul Johnson of KBW. Your line is open.
Paul Johnson: Hey, good afternoon. Thanks for taking my questions. On those situations where you are, facing refinancing spread compression or possibility of fee compression. I mean, what is the overall philosophy on refinancing those incumbent borrowers at accepting lower free fees, lower spread versus letting one go?
David Golub: So we’re in the make good investments business. I know that sounds silly in apple pie, but I actually think it’s a really important distinction because we do compete in the marketplace where some folks are more focused on quantity than quality. So we make all of our assessments based on risk-reward, Paul. And we do sometimes come to conclusions that a borrower who’s requesting a lower spread that the right answer is to say yes. We also say no sometimes. And in the last quarter, a number of examples I can think of where we said no. And in some cases, we were refinanced out. So it’s Important, I think, to maintain discipline. Part of maintaining discipline is being good at originations so that you don’t feel pressured to accept a situation where the risk-reward on the credit is unattractive just because you need to keep your book full.
Paul Johnson: That makes sense. And I appreciate the thoughtful answer there. And my last question was just on the change in the portfolio yield, this quarter it ticked higher by 20 basis points. Just wondering if there’s anything specific there to drive that just kind of given the spread compression we’re talking about maybe more on a forward basis, but any color there would be great. Thanks.
David Golub: I think it’s just noise. I wouldn’t draw any conclusions from that. I agree with you that, that seems surprising in the context of the theme of spread compression.
Operator: There are no further questions at this time. I will now turn the conference back over to David Golub, for closing remarks.
David Golub: Great. Well, thanks, everyone, for joining us today, and we look forward to talking to you again next quarter. As always, if you have any questions in the meantime, please feel free to reach out.
Operator: Thank you. Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
