David Golub: I’d say it’s not one area, Robert. It’s a combination of areas. So, you mentioned spreads are wider. They are, I’d say they’re often 50 basis points to 100 basis points wider. I think OID is better. OID and closing fees are often up an incremental 1%, not always, but often. We’re seeing improved call protection. We’re seeing improved documentation terms around EBITDA definition and particularly around the capping of adjustments. So, it’s not one element. I don’t think it ever is. I think it’s when you see the shifts in market conditions from borrower friendly to lender friendly, and vice versa, it tends to move across a number of different dimensions in concert with each other.
Robert Dodd: I appreciate that. Thank you.
Operator: Our next question will come from the line of Jeff Bernstein with Cowen. Please go ahead.
Jeff Bernstein: Yes. Hi. I was €“ first of all congratulations on the quarter and really appreciate the format of the call this quarter and the transparency. So thanks for that. I wanted you to talk a little bit more about elasticity of demand. With your companies, in particular. Obviously out there in the world, we’re seeing companies where sales are growing 5% on a 10% increase in prices, but a decline in units, and at some point, it feels like that hits the wall, but talk more specifically about the kind of companies that you’re lending to and how you’re thinking about elasticity?
David Golub: So, I think what you’re asking is exactly the right question. And let me preface this by saying, I don’t think anybody knows the full answer yet. We can’t. We’re too early in the cycle and in this period of rising prices. If I look across the portfolio and again look for patterns, there are certain companies that have an easy time raising price without a significant impact on demand. So, imagine, for example, a mission critical business-to-business software company that has a 98% renewal rate and who’s fundamental product value proposition is that they save their client’s money. So that company has a lot of pricing power. If we compare that on the other side to companies that maybe are under more pressure in the current environment.
So, imagine a restaurant chain that’s dealing with an increase in protein prices and increase in wage rates at the same time and that’s much more challenging. So, I think we’re going to see an increasing dispersion of performance over the course of the next several quarters. We’re going to get much more clarity into which firms have pricing power, which firms are maybe reaching the end of their pricing power? And my expectation is that our portfolio is going to show pretty well through that, but we won’t come through unscathed. This is an environment that is different from what we’ve seen over the course of the last 15 years and what we’ve expected management teams haven’t confronted this before. So, I think we’ve all got to accept that there’s a collective degree of learning and of uncertainty in the current environment.
Jeff Bernstein : That’s great. And then I have one more. This is a question about a tail risk, but obviously having come through COVID, it’s a very visible, kind of tail risk. And that’s China exposure, China supply chain exposure, etcetera. You know, it’s going to be okay until it’s not okay. So, how are you thinking about that? How are you talking to your companies about it, etcetera?
