Paul Johnson: Got it, thanks for that, I understand. So, it’s difficult to predict. My other question is just a little more specific to Merx. I’m trying to understand. As I do understand, these are obviously fixed rate — fixed payment leases on the underlying aircraft. This is obviously a portfolio company that’s in runoff with you guys. But in terms of aircraft leasing comparable lease rates, I guess is how I would term it, for any sort of borrower in the market, what are the current, I guess, set of comparable rates that are available to [lessees] (ph)? And what I’m getting at is are any of these borrowers, when they go to renew leases, or I don’t know if it’s possible to refinance leases, are these being done at higher fixed payments? Is that driving a longer average life of the assets, pushing out that sort of termination date? I’m just curious how that works.
Tanner Powell: Yes, absolutely. And what could be a very long answer, I’ll try to be succinct here. And first and foremost is with respect to the assets that we have in the books today. Yes, they are fixed leases, but we have fixed debt costs against those. So then as you play forward and we look at kind of a next-buyer analysis, so we look at transitioning those leases. Ultimately, a plane is an economic instrument utilized by airlines to make money. And in the same way, you see plane tickets going up to recover the broader increase in interest rates. And ultimately, because of the long duration of a lot of leases, that there is a lag there, maybe even more significant than what you’d otherwise see in maybe the leveraged loan market, but notwithstanding, that does adjust, and you will see that become reflected in how does — the lease rates.
One quick comment also, one of the aspects that gives us some cautious optimism in terms of reducing our exposure in Merx right now is that it is, generally speaking, a good yield environment for leasing companies. The increase in demand is well-documented, and at this juncture actually domestic revenue passenger miles are actually above COVID levels, internationally is lagging slightly, and overall right 96%, but importantly, with Asia having recently come back online we would expect increases in demand there. And that’s on the other side of the equation in terms of supply we continue to see issues with Airbus and Boeing to deliver significant amounts of list. And as a result, put aside the question you asked about lease rates and interest rates, notwithstanding we are seeing a healthy environment for lease rates and leasing on accountable supply/demand dynamics, which we hope will support our disposition efforts at Merx to reduce that exposure.
Paul Johnson: Thanks for that. I appreciate it. That’s an interesting dynamic, and obviously there is conversation that can go on a lot longer, but appreciate the abbreviating answer. And that’s it from me.
Operator: Thank you. Our final question comes from Kenneth Lee, RBC Capital Markets.
Kenneth Lee: Hey, good afternoon, and thanks for taking my question. Wasn’t sure whether this was discussed already, but wondering if you could just talk about any amendment activity you’ve been seeing the portfolio, whether it’s just a routine or whether they’re out of the ordinary? Thanks.
Tanner Powell: Yes, sure. So, the activity level on the amendment side of things has not picked up materially. We do have — most of our borrowers and most of our transactions how they set up covenants, and then, and so, when borrowers come back and want to grow, as we mentioned before, they’re looking to do accretive acquisitions, or if there are things where covenants are getting tied, and sponsors want to be proactive. That brings us to the table to have those discussions. Our stance when we have been doing that is looking to de-risk and/or get enhanced economics around it. And so, if a sponsor is looking for additional cushion on a leverage covenant, for example, we’re going to put — we make grant that cushion, but we’re going to have step-downs, and then also provides the opportunities for fees, and we can also look at the spreads as well.