Melissa Wedel: Thank you.
Operator: [Operator Instructions] And our next question comes from the line of Ryan Lynch with KBW. Your line is open.
Ryan Lynch: Hey, good morning. First question I had was just kind of a long maybe kind of bolted question regarding your comments on…
Joshua Easterly: We’re excited about that Ryan. That’s a good leeway.
Ryan Lynch: All right. Well, it kind of has to do with just your comments on the broadly syndicated loan market a lot of deals maturing by the end of 2025 and that as a potential opportunity. There’s already been a decent amount recently of direct lenders taking out some broadly syndicated loans. Look at PEXA Highland, Fenestra. I don’t believe that fire has kind of been an active participant in that market but please correct me if I’m wrong in that. So, I would just love to hear a couple of questions on. How do you view those kind of because I’m sure you’ve looked at those deals? How do you view those current deals that have been refinanced out of the broadest low market the quality of those deals are those deals in the future that that potentially could come out?
Would those be deals that would go into the BDC? Or would that go more your perpetual private BDC that maybe has a little bit more of an upper middle market focus. And then one of the critiques or the fears is that investors have is that the broadly syndicated loan market is a little challenged right now but the fact maybe changes a little bit and that could open back up. There’s a fear of why are these investors going to private credit versus payment it’s already in the broadly syndicated low market why not stay in there when potentially you could get better term. So, why would they go to the private credit market unless if they are guys who cannot finance in the broadly syndicated loan mark so kind of like adverse credit selection. So kind of you can go over some of that at all.
Joshua Easterly: Let me — I want to correct on the record. We don’t manage a perpetually non-credit BDC. So, I want to make sure that is clear for people. We have an institutionally backed drawdown private vehicle but that is very, very different structurally. So, I want to thank the direction side. Yes. Look let me take you — I don’t want to talk about specific credits. What I would say is that the great thing about our business is that we get up every day we get to make we get to underwrite and make decisions that we think are appropriate for our shareholders’ capital. And so the names you mentioned we’ve looked at and we didn’t participate and that’s a great thing about a marketplace. People can have different views different views about required returns cost of capital documents, momentum all those things.
And people have different risk tolerances and people have different incentives about putting money work. We’re not putting money to work et cetera. So, I don’t — I — like that’s a great thing about a marketplace. And that’s what our investors pay us for. The second thing I think you said is kind of what’s happening in the broadly syndicated loan market. Look I think the broadly syndicated loan market is most definitely structurally more challenged. That market has been 60% buyers have been CLOs 60% of those capital structures are AAAs. AAAs are difficult to find in place today outside of a unique buyer base particularly in Japan. And so that — and that market is starting to amortize — and the — so that’s the technical backdrop of that market.
