BlackRock TCP Capital (TCPC) 5 May 212021 Q1 Earnings call transcript

Ladies and gentlemen, good afternoon. Welcome, everyone, to BlackRock TCP Capital Corp.'s First Quarter 2021 Earnings Conference Call. Today's conference call is being recorded for replay purposes. [Operator Instructions]. And now I would like to turn the call over to Katie McGlynn, Director of the BlackRock TCP Capital Corp. team. Relations Investor Global proceed. please Katie,

you, Rocco. Thank

of I'll Before performance. may of this are time call that forward-looking we management guarantees statements future the assumptions begin, contain and based conference estimates and note on of statements such at not the

our to involve today, uncertainties, of and release March today Any earnings from projected. could materially actual as we risks and statements are statements made made results first change and forward-looking those the Earlier quarter on XXXX. Forward-looking XX, without issued subject notice. differ are for this call ended

in to We slide website also and posted refer please will a supplemental now we and the Relations our should which the the filed CEO, tcpcapital.com. Presentations. with Howard earnings was to the Events which to reviewed company's turn presentation I the link view on today's XX-Q, These select call, SEC today. our click To will on Levkowitz. Chairman with at documents conjunction call over earlier Form presentation, Investor and be

first TCPC me, and Davis; start Erik the our with you Cuellar. our an President and with on portfolio. COO, There TCPC in on I We update today. your appreciate you our a Katie, joining of us CFO, call including all interest Thanks, hope members quarter our and Raj the in several Vig; performance will safe and the and on continued that are Paul are our well. controller, and few comments for team thank

call We of continued another I strong comments strong first depreciation, our steady After as and highlights Beginning financial review and capital included NAV liquidity before to will results delivered investment our quarter. with questions. some that, further our will the provide Paul quality, quarter income. as your credit from closing originations robust that results opening the Next, positioning. well

higher cyclical companies in resilient consistent in on business established end results market focus less the part, our industries. at significant NAV in it market driven, our volatility Despite the middle was with XXXX, NAV middle Our than year were first of year. the models by XXXX, well strong further credit of on the NAV further narrowing market our most and financial X.X% of performance in as first private portfolio quarter quarter appreciation spread as our transactions companies. across this appreciated reflected ended in the

end. X Our totaling on to just remains at with of portfolio loans portfolio the quarter credit nonaccrual, quality solid X.X% fair value companies at

X.XX%, notes additional February, bond borrowing In during We of million also lower unsecured the eligible BDC outlook. favorable $XXX to investment-grade quarter took advantage at with the rating sub record our issued We attractive market an and Fitch, rate issuance. of stable also an reaffirmed our bond pricing costs. of for Moody's index was both which

portfolio a portfolio excess end, the quarter. positioning. Turning risk. range quarter to had diversity of market over are our XX% in billion, portfolio investments concentration value of our our an senior across a and minimizing $X.X spread secured million increase prior are of debt from of industries, and At providing fair $XXX

with the supported limited continue our the in including of sectors been affected and businesses our protections well. severely direct more investments pandemic. sectors, retail weighted that perform portfolio Our industries are airline by industries, most strong those in exposure companies towards to is also impacted more loans generally to and collateral to in Furthermore, have by these

solutions a equity of dealership we second aviation exited the quarter, loan to service largest departments, provider country, was private our Dealer-FX, in OneSky, technology the successfully in which automotive for and our jet repaid. During services the provider

portfolio represents of and position, underlying diversification largest lease X.X% the including quarter portfolio, at diverse XXth portfolio of assets. given XX companies Capital, Our further our provides end, Street its

spread is of chart the side reliant company. recurring left broadly across is on the income and on X portfolio any Slide of from illustrates, portfolio X the our As income presentation not our

In half recurring companies income. to each portfolio investments XX% than our contribute of rate. X% less of are our floating fact, over our debt

first investments lien. Additionally, XX% of debt our are

our in Market significant the origination to were activity. quarter. investment on first volumes Moving

actively we in capital market, from While leveraging the selecting breadth also a range are approach the depth platform, deploying disciplined to have BlackRock maintain to opportunities wide investing. of been this and of we our

significant them. invest but investment We small continue of number opportunities, to review percent only a a potential in of

loans, were first portfolio companies borrowers. the $XXX are perspective, investments companies existing know management investments million, X of to quarter, During opportunities. new which Follow-on From continue be and including in in we risk existing a important these we source invested XX of well. an understand

opportunities, investment in act diversity continue emphasize we colead. and new as or lead transactions capital analyze we industry where to the seniority As we structure,

and The new quarter to secured gain the investment the global of senior transfers company that lien loan volume a enabling to continue digital first a securely. to is first share facilitates term WorldRemit largest increase. the easily positioned well users conducted as global was Our of remittances WorldRemit. is money market to platform device, more international to computer or during expected a portfolio mobile leading send through money transfer transactions is using

that We first support M&A of chose lead team their are financing strategy. pleased WorldRemit their our lien to in

million. we by yield quarter. XX%, Since new basis on has noted and were which as of declined average in a sale our yield repayments or points as quarter on OneSky weighted in on portfolio the XXXX, X% I X.X% dispositions New portfolio effective the XXX March Investments our to our at pressure as investments XX. The investments average earlier, by put our in PatientPoint. investment included quarter modestly debt XX, as LIBOR X.X%, of has the December companies well offset during of $XX was overall the These partially equity loans in of weighted yield the exited yield. Dealer-FX, and first totaling web.com portfolio effective above

are rate operating LIBOR portfolio our floating in further declines floors. However, largely with of loans protected currently is XX% as rates our any from interest

impacted are beneficiaries or pandemic by are current invest of selectively, We economic continue companies the to focusing the on environment. that minimally

Our yield in The effective activity prepayment of with in To approximately to senior $XXX.X our portfolio on date. second million, pipeline in limited date, X.X%. investment investments in the secured X line generally are quarter-to-date have quarter. had a the we in approximately activity combined current second totals primarily our with loans yields

Before years. him turning the the tremendous call over XX I to Paul, his like contributions past for to would thank over

and congratulate over pursue opportunities. our like partnership. decades As X we leaving to announced team, X Erik first-class to the I for as new asset Paul broadly, promotion acknowledge with few words? dedication team has to be an Cuellar his on his TCPC's also of part say been would the and has nearly highly working CFO. instrumental in Erik him to making June alongside we last qualified more month, you BDC quick his succeed a built him on sector Controller. finance Paul experience will management and He like Paul. to would and operation in a extensive Erik, serving to Erik would like

Howard. TCPC years, to also more his the years. like And Paul leadership forward with you XX for with Controller strong work closely the results team a look of our would working as work to of the I had with I Thank to to you, After and deliver for past even shareholders. chance most and for continuing to and all TCPC's I've thank you, serving guidance over

discuss financial the in Paul? detail. turn who will I call over to Paul, our results more will Now

as in to Thanks, many serve and for appointment. and our to his to to company I've Erik. I'm the for well-qualified leader since congratulations the Erik served hands. be known inception, have and worked I team shareholders capable and Thanks, opportunity Erik decade Howard. and leave the our our CFO. grateful My experienced on alongside good trust and pending a a company's

for per our for was sustainable lowest years. by $X.XX cash which PIK per This share. committed share. paying recurring dividend of quarter level quarter a investment quarter fee our in XXXX. for generated share. of We per we the dividend that PIK remain we've IPO since share, of every fully quarter. $X.XX Notably, net of to income turning -- net is this recurring income included to of Today, dividend income more second done discount X was income financial first and $X.XX quarter interest a We of $X.XX in was results declared exceeded investment $X.XX. as the per Investment our covered Now amortization than our $X.XX income and the $X.XX, of

of $X.XX the the dividend included a time made. and OID total expenses income totaled income $X.XX rather our recurring net the Edmentum. the per our previously $X.XX $X.XX for included share or per recognition of first policy at Dividend economics from the interest is generally fees million an fees, all of $X.X As $X.XX quarter, including and and of upfront amortizing reminder, income, follows of income quarter per investment life first over also income share $X.XX and our per share per $X.X Incentive debt dividend it other $X.X fees. of investment of or for of in share. million $X.XX income share. investment deferred were accelerated recognizing quarter included of million exit income equity Investment than in $X.XX expenses first Operating on in conservative investment other the

total we've were below quarter income return the temporarily deferred incentive the XXXX to our first noted, our previously performance As of when fees related from fell hurdle.

hurdle. further the its interest cumulative in surpassed second was total of shareholders over remaining quarter September time. year, amount this subject performance hurdle, our to capacity further our our above our the we the of deferral While our again with this return aligns of deferred X the our amount believe full portfolio our and and that earned voluntarily performance confidence year, in demonstrates through quarters earnings over strength We when the

investment the in Unrealized $XX for gains investment online number by gain companies. driver of of of our reflected the provided and share, oversight, of continues tightening included include And specific of unrealized million quarter as both every These gains offset $X largest delivered loans Our The company included all partially services. of of increase. third-party to The gains our Solar. gains improved net $X at and including quarter net Edmentum. of is our Realized financial every gains of portfolio significant our also gains services OneSky, GlassPoint using results valuations. exit subject sources. the educational in to net million prices our back valued million in appreciation our the investments on credit a interest million. was quarter quotation $XX per to valuation on process $X.X unrealized products by which disposition equity and million Substantially against spread its of continued a increase are in in independent $X.XX was net testing independent assets the or realized sale rigorous

Our overall credit quality remains strong.

nonaccruals in new no with the first noted, quarter. Howard As

$XX loan loans settlements and we cash Following the liquidity have companies at now million our at just an February, only end of $XXX now In CIBT net unsecured X X.XX%. of X.X% and X have total which represented of the of or revolver cost. ended opportunistically with additional notes portfolio of of we million, -- just which leverage just pending at point, exit were million portfolio quarter of million. nonaccrual, commitments issued $XX of X% million, million. $XXX we to $XX equaled million commitments. portfolio available Unfunded of of fair X.X% investments included total together $XX quarter value Avanti, $XXX This on last of We the companies

bond a for issuance. As Howard coupon noted, low sub BDC index a eligible record

Our flexible unsecured note convertible leverage X issuances program. X diverse straight issuance, note an facilities, low-cost now SBA and and program includes credit

rating continues stable debt portfolio single are Noting, our and Fitch to performance stability." in flexibility." outlook. reaffirmed team rating of and among over In February, Moody's Our not credit, any size well Fitch. with and investment-grade performance stable an funding earnings things, be our of strong is financial we experienced a management comprised "Solid And of which date laddered. its investment-grade "Track X-year leverage of also modest and senior outlook, source TCP's a of liquidity loans, investment-grade reaffirmed reliant both by on effective debt to the each Given its track noting record in record unsecured January, Moody's overly other rated of proportion a management issuances, history, and operating our with are credit secured investment program higher financing,

call the our Our after nearest we And redeem of down of interest Howard. very recent to liabilities rate March decreased to maturity Combined, now beginning are positioned the to from notes. the issuance, bond over is X.XX%, X.XX% our outstanding I'll turn well particularly back at average quarter. XXXX. the now those weighted on

role roughly key these GDP the middle stability and of emphasized market for companies private have achieve months the for strength as businesses. well as tailored investments, platform capital scale resiliency making solutions source to to opportunities look BDCs XX that X/X last initiatives. play The Paul. to market in throughout Thanks, BlackRock as BlackRock direct overlooked sector selective that providing growth to financing increasingly remain lenders the businesses like unique history. in Middle account and their leveraging We of new our strategic the done we've the or of

has return of middle TCPC our Our on has team consistently the The than said, to market risk-adjusted our outperformed overall remain investment shareholders. and TCPC our and upon That returned to return robust, cash more Wells cycles, strong and our annualized dividends, Fargo than through and disciplined. per X IPO and lending deliver been in continue of also reflective inform has share market Since for is assets a this continue is $XX to an we to for to multiple translates decisions to BDC companies pickup we see XX.X%. decades more we in and experience index. environment to activity. invested draw in XXXX, investors of returns which X.X% selective

the structure and And In like with current thank would positions call to several closing, underweights assets returns or risk-adjusted to continue navigate maintain dedication on continued for cyclical by team not for environment particularly will the seek diversified include environment that guided highly are cycles, we we company take mitigation. the given that, specific their take our secured over widely and portfolio dynamics, work, entire our senior through please downside managing operator, and generating or past for risk questions. As to we industry market advantage shareholders we a focus industries, for unique understood of our strong hard open and year. experience transactions to collateral challenging economic the

comes Chris with Kotowski [Operator Oppenheimer. from Instructions]. Today's question first

in your step-up income wondering, in significant other was particular, interest step I income? see Yes. you some $X.X you XX significant a was reclassification But income. referenced wondering, million or kind dividend there? presentation, a I the is of of there on what down in of dividend Page and And happened

I'll Raj. that. it's Chris, take

recap And the I part biggest we think we in that an had obviously, to have tied prior of debt the that's repayment Edmentum, probably is of where movement position the accruing. equity and the quarters.

would we I view I -- -- that, recurring dividend also as is would would I note And it income. say that

Right.

$X.X The million is referenced that recurring? you

of most That's it.

of Yes. Anything tied is income. to Edmentum, which I think is recurring the that majority contractual

Correct.

the $X dropped, of in income of and interest swap? it And the $X a it equity debt $XX steady the in the -- because side million, been I kind your step income, you area, another had is other quarter? pretty million then Was just Or interest mean, right, million equation? like down or $XX that the million

does flow that by which quarter, prepayment the no this from And interest wasn't No. into on big part It really switch Edmentum income position. debt-to-equity income.

Yes.

wasn't a debt which debt a which of between and was It an tied repayment equity swap it wasn't It because up the clear, to the equity be stepped ongoing valuation value. the as the equity, transaction position swap quarters. closed. to within It was ongoing income just higher a technically. the at that was Just position was of upon a

that quarter-to-date in that the And there Is characterize statistics very paydowns. equation. there of no the theologic wonder, then side that active significant can you market. a I were think there from would indicated no current think it's -- -- secondly, the the I one you were M&A inflow

they prepayment not income. comment that And to significant there Making material are wasn't and that thanks think clarity, I we distinction, quarter-to-quarter. -- there prepayments, others weren't hadn't, you premiums just and episodic we prepayment from amounts different identifying question. were for just investments the for aware, well have and in significant Chris, date, as we of those. amounts was but It range Erik's is from gotten that

robust. is activity deal Our

You number income certainly episodic. been QX. side. prepayment most into and lighter continues in ones. X only We're little can we the the were been leader us, on sole but both which see investor for although repayments of are from added QX, weeks also, has a a historically QX it's origination investments, QX into on, the larger of we That robust

wouldn't weeks derive it from data. of much too So X

And James. from next Dodd our Raymond with comes Robert question today

And was on $X.X follow-up Chris, question to of down just drill dividend dividend a you kind I the control to little income first. the -- so had million. mean,

Edmentum there's of recurring. couple obviously the of from related is $XXX,XXX positions. Was which million was There returning? $XXX,XXX, other are and that to -- is Iracore, other obviously them? there's control $X.X so not And NEG, say another equity that You

about from Iracore had million We $X.X this Yes. quarter.

We and million then from some Amtech think, from $XXX,XXX about, this dividend well. $XXX other had from as I also income about quarter, income XXth Amtech Street

that how XXth is much the basically $X.X income, is dividend Understood. million And mean, Street... basically of said you recurring? the I the just

No. yes. -- Yes, sorry,

So don't recurring. exact would a into know, then should a in be each have -- dividend and as XXth and of growing. a of split, say contractual, it's that has we're have which been that actually -- I Street, has rate participation I most income but breakdown an well we quarter, you majority preferred

So actually takes a and over up quite the variable which recurring like. actually amount, recurring the that then is us bit component partly we

growing I Street. -- majority not, it's good, say seeing as has it ties it XXth is recurring, that actually would variable income but been consistent So the majority we're to where the of then actually

Got it. it. Got

that's of recurring nonrecurring. So kind

the We one. growing, and I nonrecurring Recurring, guess, will. you last if get

hot mean, you're the rest ignoring, And year, seeing just good in overall, looks year, any expect your it. of if Got very, portfolio good changes whether the acceleration or material the I I specific I likely your it's mean, comes in it. it is I a to see prepayment and activity, the looks view -- what's on tax mean, with be market right? on to to hot middle is pipeline color with not which when that with Appreciate can, Yes. through prepayment on The shape. that Yes. fees very get not, you're you're Is -- of going the question, And of M&A market appears the the front? to number different probability going repayments. near-term year? ready that? next how repaid a cope this activity that the kind It that in assets? a of like in

and triggered just of on It's the the quarter to prepayment. good. in I It's I'll the of opportunities. bit. what part and and deployment that the at of in gets to good, very early So so income you've on prepayments of to quarter. Howard of say the would generating that hard for and ask a others predict maybe The is also prepayment good break add next from time pipeline the start internally let also the has try and perspective. to me -- join a But try little it leads up in say because the portfolio some that part timing I would of level seen been

a in through folks grow our M&A. lot to of continuing So invest actually are now right business,

like, those it's of which pursue much capital it's So types those additional like so a we not to actually prepayment, deals. we really initiatives,

just but point, that as that in go pipeline, just it's happens predict So the shape within as predicting I Howard comes. earlier but we'll is it I with repayment, it's game to from predict, expect it's Over to handle don't see some quarter. good to time, to to very But to my hard I episodic, what each hard more, want of said. get back actually think, and the prepayment in

historically, prepayments. through well the back of and time, people. build periods we Howard. see great over continue, likely of quarter-to-quarter we consistent. if consistent. you variance. difficult tends to And And look albeit public think significant it low. with can borrowers Raj's And decades. loans been our to GFC to fairly X this period funds long have multi-quarter what with working long this it's were QX, has over you is Every time, been saying, comment a the a doing on includes time two varies. and but good to its are long historically, for delta portfolio that be over you of But periods the retain we periods But that's good really advantage for relationships. existing our look have prepayments long at a When at of historically are TCPC quarter, actively time, very we predecessor In to Robert, fairly of with privately Raj for had them. they period QX, And and even borrowers it's over having just years, time, having been existed it half relationships

look important it to so And really and where do that's that's something us, to makes we sense.

next question at Ryan And today Lynch comes the KBW. from

First kind higher one, of one. a level just

flow, the You about guys advantage quarter, first talk in guys in you Can resulting flow the really obviously nice in sit? that in is both main QX. able increase a of strong the seen you kind that's deal deal to just from you have take had where your of? What drivers increase guys to are start you also a but

I which what but is we've M&A, period, the the it's Thanks much very current seen capital immediate Yes. of investments. post-COVID question. say, period, historically, some in when you the sort would exclude growth for

defensive seeing proceeds sectors it's have space, And to. seeing a many in of or the themes we're of across business say I sector that like the acquisition and the the we're invest But good think invest would business. good are growth consistently particularly to those it's business via in are areas, exposure in the we another services. technology care seeing even -- health I fact, we're and initiatives, around In use -- financial and the

invest just that the where a sectors economic coming the we outlook strong of looking of capital, that structure as Does coming over to of in be coming you're the deploy the as and you the are certain growth sectors? guys guys Does that in very currently you -- Or companies to quarters are far in in? either of out having years. where the looking the change capital which cycle, are hopefully, frame in

history marginally. -- say not do we like defensive we're said of would just general, we've in -- on public the but the focusing the company, I I going only the to mean, platform, industries. really we always

I we being to the up anticipate think they going industries but defensive COVID, able into and hold we anticipate well, Covid, didn't generally, did.

at actively. to think in that say growth to as I margin, It We doesn't mean creditworthiness it's I we we're the going and participate to going where willing change our stretch on growth, want some capital points, be we valuations in see in and growth attachment may evidence we to our reliability be there's the it loan-to-value some the wouldn't but on or the structure. -- more drives.

that be the borrowers. do been at want our the with So much within that we we follow. doing structure those sectors investing in the feels right very the we've same to what to I echo think of cap works, more I And feel been But I speaking, place. generally we think we've margin, where the we'll open like

And question Fargo. comes today next our O'Shea Wells with from Finian

Congratulations, for are Paul, economy I we think leverage there's of debt don't about everyone your growth question where more an number and the on to you this potentially next driving end things the you Is with quarters? the a just a outlook I function you'll think wanted a I but portfolio slower know higher? of beginnings. should tying over typically growth. those to of this there, together good, is on about Is opportunities this higher a lot run. origination had and when repayment else unsecured leverage. combining the sort tie we environment, of a more of should yourself portfolio new on TCP relaxing that on and of couple ask Or the of environment, we that a have function dialogue

for Santa So and Good Fin, still Appreciate Monica. morning from in us the on Howard. to afternoon the question It's good here leverage. thanks question. you,

with We more sheet. able of mindful pleased A unsecured facilities, there. of do our balance run very to on very side year the we that the debt. been right what extend we've starting add ago, We're are to leverage

think down think ample do loan fit and good And management, flexibility and deals sheet, in at have a and flexibility. each which our earlier And our in bit. build we our little leverage incremental we And go one a small the both up treatment liquidity they balance We and time. in really the portfolio really add the band a deal well as of prefer well received just leverage to opposed safety comfort, rating does doing focused as of we're as fit that. from just this it. it about to year. about long does and with favorable on with not our as we're additional within to it's revolvers how -- on portfolio And we on construction we have this or increment agencies we're within We

good leverage down for is number go as issue. the leverage down of as attachment come our little And a bit little are as solutions point our goal or comfort on good it focusing up the on range, have quarters with not as concerned last opposed within did And the well as the that comfortable bit whether stays are up or moving a our is risk long in within overly letting borrowers, that. and a provide to a singular We to to get we loans books. it

investment was the And of maintaining your haven't guidelines review. sort there Is rating target in latest agency any I -- Okay. on their there change any grade? looked at

Paul. mean, I this is No.

and sector the been from on for is as lot them very in is positive. tracking the view with They of very we're going rating metrics against tell their confidence and on seeing us, could and positive we're their positive, have last our all They're been that. whole. they've forward. own conversations both have But a Our all I way strong -- everything grateful

question today Securities. with comes our Fultz JMP And next Kevin from

similar have been quarter? you questions of my But what to have just I period a with that. first visibility is one say would prepayments about answered the of I follow-up beyond some cadence already, prepayments. Most the but quarter-to-date saw in possibly on we're X-week you talking know

It's early assessment. to that really make too

in at QX, fact its And taking look I year prepayments, And have we We year-end derive in larger there much big in row. you a X off that any whole a a were loans. difference. QX it They sometimes given lot few and quarters kept has technical pattern, can a pay wouldn't a from quarter. had has issues. If you it than that up a thought last period versus They going pattern, to QX. weeks, don't but QX own issues, loan to there's other it's XX-week were our the kept that in being --

larger so loan. were And highlighting quarters kind we this we a from very hadn't the was because more the seen that's the significant. normative. happens time, And simply at haven't where it's prepayment these of But seen we thing significant quarter-to-date, point, we in this portfolios. yet fact that that income It's time And of have do it to much it.

And Nolan question Ladenburg comes Thalmann. with our from next today Christopher

affecting have a hearing approach an to and in answered, more Q, that roughly at the we're adjustments is inflation income looking Paul the Paul, one looking value, the working more economic except there it's with we're to discount pleasure about Most forward already It's a to you. And your fair Erik. using and future. And of creep starting say, in. -- and economy. rate. of use I talking X/X my at First, Erik, working to asked questions am been want both I you congratulations with

from, your share? interest the that investment how I it were according to much what go do if up, bp think I value is you to income let's your impacted? Now movement? per rates And But if book say, Q, happens XX mean benefits. net know so, to

course, And over on LIBOR. transition the have interest so We tied just is than changes we And to away see there. note more of a the rate that rate LIBOR. that's the sensitivity everybody focused LIBOR interest market from in time, in treasury I the are on will And that would market.

respect But that interest we have in on And disclosure so keep I'd with expect would what there we mind. to granular rates.

floating by is floating It's add of it mostly on -- that changes have just I really driven most it's was valuations. I versus that because it rate, unlikely in Yes to would since changes add spreads more effect significant rate. Yes, LIBOR portfolio a sorry, our going is

discount how fair Well, you're up, a happen discount again, go normally, would your about and that your interest investments. more because is will rate, if that rate valuations using my impact and of the go up concern rates value

went But floating the yes, rates reference the as would assets, what overall the I and LIBOR was if rate interest go actually up, also think is the it rate went loans tied saying to on up. rate up, we're

a shock it's that difference mitigates big move. and to the so just think I hard also I that's up progressively the valuation And that's it to the match a I what sudden things side. any liability it the between dramatic rate being in us allow is. But the of to in the gradually, and would side that again, it asset what -- -- asset gradual a that along rate something just But If predict practically, to think just don't the different, But on rates the moves perhaps shot system see the was loan side, think lines went move I system. rates, if because speaking happened will COVID.

Chris, And been historically, had entire you this It's every can use decades. using And for very we see robust. movement. we quarter. been going And valuations back almost we've mean, rate our third-party portfolio have using actually we've I -- process

the coming quarter-over-quarter, LIBOR or X can think and And had the global the the getting financial We expect books. -- out certainly, go historically move that of our the and and years, have last see I they Raj to move crisis Erik and way on for. can And X both as the down a you have last impacts in through And over in up a you're fact. LIBOR how if X in spreads we'd precedent in out, probably itself, it's are you books. lot flows our pointing there's see of

on welcome actually were We of the that's something the in last Yes. higher to that the downward would just underwriting asset we again, environment side, And said be punch a think, rates. time on rates welcome us. trend, I as terms the line,

to any final your Levkowitz concludes call over Howard turn this remarks. the gentlemen, question-and-answer I'll for and back Ladies session.

to shareholders your thanks your questions team and dialogue Thanks. our for your work our and for dedication all This concludes Corp. our of hard We appreciate like experienced BlackRock professionals continued confidence today. talented I'd of thank thank like your TCP to and also I'd at us. and Capital joining support. call. continued for today's

Thank you, sir.

and You may lines, a have day. your disconnect wonderful now