Julien Dumoulin-Smith: All right, fair enough. I’ll leave it there, guys. We’ll talk in 4Q.
Operator: Our next question is from Jon Windham with UBS. Please go ahead.
Jon Windham: Okay, great results. We’re actually finding a pretty target-rich environment, like capital. Maybe just help me to clarify a couple of things. There’s a relatively big provision for loss in the quarter. I know they pop up every now and then. Can you just talk through what that was again?
Jeff Lipson: Sure. So that was primarily related to the CECL that gets put on when we put new loans on the balance sheet, and a very large portion of the volume that was funded this quarter were in the form of loans. That’s the primary.
Jon Windham: Okay, great. And then can you just — obviously, the residential solar part of the clean energy market right now is struggling a little bit, and maybe even in particular SunPower just had some announcements about its accounting. Can you just remind people what the relationship is there with SunPower and your preferred position within the cash flows? Thanks.
Jeff Lipson: Sure. Thanks for asking. So we have a joint venture with SunPower that exclusively exists to hold assets that they essentially originate, and when those assets are operating, they sell them to this partnership. That, of course, moves it off balance sheet from their perspective. Our role in that is really just to monetize the cash flows from the underlying asset portfolio, and that really just to emphasize some comments I made in the prepared remarks drives the fact that our performance is very much associated from the corporate performance of any of our clients, not just SunPower and so our role in that is we do have a preference on the cash flows, and the performance of those underlying portfolios are holding up well and in line with our underwriting expectations and I would just add that SunPower has been and we expect will continue to be a great partner of ours, but our role in the residential solar market is really just to monetize cash flows.
Operator: Our next question is from Jeff Osborne with Cowen & Company. Please go ahead.
Jeff Osborne: Thank you. Most of my questions have been answered. I think just to follow up on the residential solar side, I think the Crowe Bond Writing Agency [ph] data suggests that default rates on solar loans historically that have been puritized have increased. Are you seeing that on your books?
Jeff Lipson: One clarification, just to make sure we’re talking apples to apples, is that our vast majority, I don’t have a number, but let’s just say 95% of our residential solar portfolio are leases and not loans. So I just wanted to make a clarification on that. In terms of delinquencies, we certainly see them move around, but compared to the way we underwrote these transactions, the total transactions are continuing to perform in line with our underwriting expectations.
Jeff Osborne: And you’ve talked a lot about adapting around the deals in terms of raising rate environment. Have there been any noticeable changes on accrual rates or IRR related investments?
Marc Pangburn: Sure. So I would say in terms of accruals, no. We do have a process where roughly every six months we re-underwrite our EMI investments with the general lens of how would we invest in them today. And to the extent that re-underwriting is different from how we have them currently on the balance sheet, we would update our yield expectations accordingly, and that would then flow through into the portfolio yield, that 7.9% that we report on quarterly. And so, yes, there have been changes over time, but that’s the normal course of how we look at those models.
Operator: Thank you. As there are no further questions at this time, ladies and gentlemen, that concludes today’s teleconference. Thank you for your participation. You may now disconnect your lines.
