So, on his last Sequoia deal, we sold 6% AAA bonds, which price at a very slight discount to par. Just obviously, on a hedge adjusted basis, it was higher than that. We’re able to create bond profiles from a convexity perspective that are getting a lot of people in books. We had a few first time buyers as well. We are exploring the right coupon slots for upcoming deals. It’s possible we’ll sell 6.5 before the end of the year where we see decent liquidity. We were able to manufacture some really nice profiles with obviously very good carry, and more limited extension risk just based on where the dollar prices are. So we’ve been pleased with that, that notwithstanding the volatility, the execution for Sequoia has remained really strong.
Stephen Laws: Great. Thanks for the comments this evening.
Operator: Thank you. Our next question comes from the line of Kevin Barker with Piper Sandler. Please go ahead.
Kevin Barker: Thank you. On the BPL portfolio, it’s good to see that the 90-day delinquencies have come down. It looks like we’ve seen a few loans transition to REO. Maybe could you maybe provide a little bit more depth on how that portfolio is performing? Is it possible to maybe categorize some of that portfolio as either like a watch list or classified and how that’s developed over the last few quarters? Thanks.
Dash Robinson: Sure. I think, we measure — we obviously have a bunch of different metrics in terms of managing the book. Maybe I’ll stop short of quantifying the specific buckets, Kevin, but I think we look at a few different key metrics, obviously, payment velocity and delinquency is the one that we talked the most about on these calls and publicly. But the other big thing we look at is just overall, number one, just where the projects are on schedule. So we spent a lot of time focusing on that and making sure that the sponsors are getting up and down, as quickly or if not, and need more time. What that means, number one, for potential extensions and obviously, fresh equity, because obviously, if projects take longer, ultimately, interest expense will go up through time, because of the — of a longer duration loan.
Just to give you some context on extensions, like give or take over the past 6 months or so, we have extended probably 25% to 30% of the book on average. Those extensions range from anywhere from 3 to 6 months. And generally we have not had to extend the second time. We’ve had sponsors generally get in and out in those timeframes. That’s an expected part of the bridge business. It frankly, it always has been even before market conditions have gotten harder. I think we’ve done a really good job, a much better job, frankly, over the past 18 to 24 months, getting ahead of some of these issues. Being out in front of situations where we’re talking to sponsors, 3 to 6 months before their maturity, and we may assess the maturity date well in advance of that actual date.
And from our perspective, actually, we think that’s healthy, because those points in time, that’s the right point in time to do it, again, fresh equity and understand the interest rate that they’re in is right, and just really understanding how much more time they need. So I think, Kevin, the biggest thing is time, right? It’s just understanding if these sponsors need more time to get these projects done. I think the modifications of the extensions are sort of a good indicia of that, I would say.
Kevin Barker: So, regard to that market, are you seeing an increasing amount of competition, a decreasing amount of competition? And are you seeing your ability to either increase price on new originations, maybe just a general view on the competitive dynamic within the BPL book?
