So going to your question of what is our leverage levels, we just have to balance the fact that we’ve got some statutory requirements. We’ve got some — which is most important to us, credit quality issues, like how do these assets fit within our credit quality perspective? And as Mike said, we’ve got a very high bar, and we’re putting on some tremendously strong credits in this environment. So I can’t give a precise answer, but it’s kind of opportunity driven and risk assessment driven and statutory [Technical Difficulty] looking at all of that at once and trying to do the best job we can to continue our pretty substantial and remarkable earnings performance.
Bryce Rowe: Yes. I appreciate that. It’s great to see the progression in earnings and certainly impressive quarter this quarter and even the last couple. So, I appreciate the comments.
Christian Oberbeck: Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Casey Alexander from Compass Point Research. Your line is open.
Casey Alexander: Hi, good morning. And thank you for taking my questions. I’ve got a couple here. First of all, I think Henri mentioned in the prepared remarks, that 29% of the first lien portfolio encompassed last-out position. So I’m not sure that I’ve heard that before. And I think maybe this is for Mike. If you could explain what characteristics are you looking for that you would accept the position that’s a last-out position, kind of, who’s in front of you? It’s kind of unusual in that not a lot of term loans have partial repayments. So I’m sort of interested in the characteristics. And why not have the chart on page eight. The portfolio composition recognize that some of those first lien loans are last-out positions?
Michael Grisius: Good morning, Casey. Let me address the way that we think about last out positions vis-a-vis $1 unitranche positions. Certainly, the bar is higher for those positions, given that we’re in a first lien position, which is kind of the premium spot to be in the balance sheet, albeit behind a first-out lender. So we’re looking at when we make those investments at making sure that from a credit quality perspective, we feel that much more comfortable that that position is one that is sensible and that we’re well protected by the enterprise value of the business. We also structure those deals typically with partners that we scrutinize very carefully and have a great deal of comfort that their rational partners, and we typically structure those, also we’re not typically — always structure those with an agreement in terms of how the loan is administered should there be any challenges or what have you.
And there’s lots of protections around how we structure the deal so that we’re working in partnership with the first-out lender. Generally, and there’s a lot of nuances in terms of how first out last out deals are structured. But the way we structure them is such that we feel very comfortable that the terms are strong, especially relative to some other structures that we’ve seen in the marketplace. And as I said, we’re scrutinizing the partners that we work with to make sure that we’ve got a lot of comfort that they are reasonable in terms of their credit underwriting and that we have a good partnership approach to investing.
Henri Steenkamp: Casey, and I would just add, although we don’t show it in the chart, I have been always providing that breakout for years now always in my remarks, just to give that color as well. So, it’s not a new disclosure there.
