Certainly, the mismatch is helping us right now with fixed rate liabilities and floating rate assets in a rising interest rate environment. But looking forward, it’s something that we are certainly cognizant of and I think €“ but we haven’t reached that point yet as we look to originate assets. And part of it is also that we are not seeing any demand from our borrowers to have fixed rate assets.
David Miyazaki: Okay. Thank you. And I guess the last question I have would be €“ and I’m just kind of thinking about all these things from a structuring perspective in that, as rates of €“ as a Fed has tightened that it’s benefited your company. I kind of think about the whole cycle and if rates began coming down, one of the things that was helpful in the last easing cycle, of course, were the LIBOR floors and before the Fed was easing prior to the pandemic people were kind of setting in floors around a 100 basis points of LIBOR or SOFR, whatever the reference rate is. And it seems to me like right now with the Fed’s still in its tightening cycle and LIBOR or SOFR so far above that level that it would almost be somewhat costless or free to move the floors up much higher to 200 basis points and 250 basis points.
When nobody thinks that the rate is going to come back down, then you kind of get some free negotiating strength, I should in the documentation. And I’ve asked this of lenders in the upper middle market, and they really don’t €“ in general seem to think that’s a priority, ostensibly, because they don’t think that the rates are going to come back down again. But when you think about the whole cycle, is there an opportunity for you to underwrite loans in the lower middle market where you have more negotiating power and more ability to sort of individualize the loan documents? Do you think about putting in higher LIBOR or SOFR floors into your documentation?
Bilal Rashid: Yes, David, that’s another excellent question. We are looking at that as well. In fact, we were recently looking at a transaction where we were requesting a 2% floor, for example. So that’s something that we are definitely contemplating. And in fact as we look at new originations, we’re certainly asking for higher floors. So, perhaps going from 1% to 2%, I think as you said when rates are this high and nobody’s thinking about interest rates going down anytime in the near future, it’s something that is that people will be quite amenable to or I should say, they’ll be more open to. And so we’re certainly thinking about it and in fact asking for it. And then we’ll see how successful we are in that regard. But yes, certainly it’s on our mind.
JeffCerny: Hey, David, this is Jeff. It’s also a competitive issue and it’s one of many terms in a term sheet and yes, if we can push for a higher floor, we have attempted to do that. But it does become a bit of a competitive issue and as you’re negotiating a term sheet on a new transaction.
David Miyazaki: Okay. Great. Well, I appreciate all the details on a whole range of different questions I had for you. It helps and the nature of your underwriting and how you’re looking at the landscape going forward, so I appreciate your time.
Bilal Rashid: Thank you, David.
JeffCerny: Thanks, David.
Operator: The next question is from David Prosky, a private investor. Please go ahead.
David Prosky: Hi, gentlemen. How you doing? I just wanted to ask you about the equity investments and in particular, the Pfanstiehl. If you could give us a little color on how it’s doing and what your thoughts are?
