Golub Capital BDC (GBDC) 9 May 232023 Q2 Earnings call transcript

Hello everyone and welcome to GBDC's March 31, 2023 Quarterly Earnings Call.

Before we begin, I'd like to take a moment to remind our listeners that remarks made during this call may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in GBDC's SEC filings.

For materials, we intend to refer to on today's earnings call please visit the Investor Resources tab on the homepage of our website, which is www.golubcapitalbdc.com and click on the Events Presentations link.

also our is Investor in release section. Resources earnings available website on the Our

this being call reminder a As is recorded.

of With that, David Officer to call the GBDC. I'm pleased Golub, to Chief turn over Executive

Chief us and everybody, joined Ericson, by Officer. Chief thanks Benton, joining Financial Hello, today. and Officer, for by I'm Chris our Operating Matt our

by loans is on providing backed first those who new partnership-oriented are that focus For strong resilient to GBDC, companies senior sponsors. to secured to equity of you our healthy middle-market investment strategy private lien are

with and about Yesterday, to for performance of we our our issued the the start talk quarter our quarter headlines the referring want posted for usual to I'm earnings presentation that press outlook. ended and I release March an today. a XX, we be to call on summary presentation earnings then during website. We'll going XXXX as

Good news, less last than I'm to going long-winded quarter. be

Chris detail. remarks for questions. through and some closing our and Matt I'm go back make results come finally, to And financial will to Next, in take quarter the going

that Before mention also on you these of Capital. Presentation website. hope It the couple and Golub in, intend to to a I Equity presentations want source you over next to another on Investor information available useful GBDC be on our we to will weeks. our additional publish GBDC jump find update We we of

Okay.

XXXX March trends. me solid performance Four Let ended the it XX, was GBDC's was start with with highlights. headlines. and quarter consistent recent for

December per equates believe of adjusted a for how materially We share have and this ROE XX% quarter per earnings higher base increased rates in to reflects That's by spreads $X.XX XX.X%. both adjusted adjusted record ended $X.XX First, share it NII investment NII higher to income GBDC's increased from the share power. GBDC, and an per net XX.

increased dividend Quarterly Second, $X.XX per dividend quarterly adjusted GBDC's exceeded coverage share. of per share to significantly as coverage. XXX% dividend NII

realized losses GBDC's fact change came interest $X.XX of remained in fiscal economic unrealized and it strong line was and somewhat and portfolio it remained strong, net meaningfully performance ratings per despite better was did and overall performance with than migration rising QX slower for not and Adjusted rates Third, credit our in Non-accruals expectations. and share. to growth.

Together highlight. per the at a believe per we to repurchase during we $X.XX share. per on time have executed Fourth drove GBDC increase of speaks program to price value quarter shares repurchased its $XX.XX that the the results is XXX,XXX quarter-over-quarter share. conviction weighted proposition. share in the This purchasing average in a NAV shares we've first and $XX.XX this GBDC's share

for quarter, preparing While to want with challenging GBDC's we're clear view complacency. the that calendar We QX for performance anticipate we pleased and results we're as I don't reason a for be conditions. our more

the is not saying not I'm soft recession coming and I'm predicting a Now landing.

As and the we'll to we about talk talk of in about response want conflicting conflicting this we're doing we what to them. course We talk to see today. signals those about want call, over signals

by conflicting signals. start me Let the describing

that barely by are layoffs of are rough and including GDP predicting slowed. Challenger, the indicators of commentators and chorus Eli an companies high-profile outplacement for have weak has winning Lilly We've firm, layoffs announce of growth above said A in we has Paramount grown patch seen the On recent the than year-to-date. news. It's the There likes lots to that on see and QX one announced hand, basis. annualized results calendar report a an X% louder. more employers XXX,XXX recession QX ahead. economists

revenue the calendar and strong quarter On QX earnings growth showed the Capital to the results. Market of Middle for hand, Golub consecutive other second double-digit report surprisingly

low. also remains rate default Our

ratings. performance We or significant non-accruals in seen material in migration movement haven't

right Fed about case this of judgment year acceleration growth way and about expect potential later the what we'd So a to XXXX these to about position I muddling decline. see the continues expect start in a signals good in A rates is to conflicting do we'd talk that rest conflicting early is inflation case to the two, decelerate start scenario, in likely in these year. cutting I'll scenario to think terms Well, bad think puts more to this for scenarios. when a and think growth signals rates my and scenario them In good to see next or scenario. an mean? case of

is tightening of bank going lending in easy a One spending, bank going bad of it's that imagine failures cause the worse. these of of three be, bad The Not macro scenario a is bank potential the of this case recent to outcomes. that to talk about to keep consumer for what dampening impact relates failures failures. but are string to yet to conditions case scenario getting full culprit clear want or I the business a reduction investment, those all activity

we We're borrowers and challenging our to seeing to What cut despite shore up to seeing liquidity. right steps portfolio adapting environment. generally now? a take are Well, of the well costs are most in prices borrowers raise

are In kind Now of even the we under strong this management under and this where our market teams conditions selective and isn't valuable partners. sponsors conditions. of companies view about challenging is surprising. companies very lend adapting are to. particularly We're look that changing strong We capable for the ably

expect see also hand, market where to kind the On is this credit of the migration. some other we

markets see to We expect in this generally. credit

GBDC's date dispersion portfolio discuss is based internal challenging in portfolio on We'll GBDC's greater expect in BDC outcomes managers in less of to in And expected based years to typically it more look we seen To expect that on GBDC's a for later that at to in. The migration performance. point the ratings we And credit detail we to when it in in typically in I more to they're and see. than see investors lender want borrower leads We market emphasize which leads this the invested performance we've Capital's greater Golub presentation. different to leads that in here generally see experience, to portfolio. environment XX-plus dispersion performance. turn

Let that differently. me say

most to we period While about credit more that of this stress. quarter's want we expect we quarter we're successfully, see some I our the reiterate stress. also that Last prepare borrowers navigate of more call. of the coming for continue some to talked to expect in to doing things credit to

the resources last we place to and less continue On us monitoring help detail enhanced that resilient procedures These summer those use. borrowers borrowers. in we described identify which we last procedures call portfolio put quarter's in to allocate additional to

procedures Golub We your We enhanced six on potential in of key a loan against and six for in and risk Direct Market resistance, this Golub recollection, Cashman, the entire credit we Head Middle higher company-by-company analysis. focused basis substitute quality sector-specific our issues. Lending these recession rates, exposure, on higher portfolio factors: software words vulnerabilities. Capital's granular did looking evaluated earnings refresh no international of interest To there's Greg were because of factors for Capital's we just inflation,

revisiting our resiliency we So analysis. keep

the One before teams We're in thought We're of tail portfolio. with vulnerable I and navigate we're successfully error. to we've to platform working prior management the help their power monitoring this rodeo. Golub as mic is increase borrowers closely for Capital of bumpy and to successfully much GBDC performance laser-focused Matt, the final isn't the margin first small borrowers coming period our periods. on the We pass going sponsors relatively of those GBDC's navigated believe the

Thanks, David.

$X.XX an which as low was share by of $X.XX, by a adjusted well represents rates Let's NII as of adjusted $X.XX on share GBDC's of per increase primarily quarter-over-quarter turn to On cost represents funding. basis, per to NII, the of This Slide portfolio increased X XX.X%. approximately of base XX%. now. ROAE increase higher the annualized GBDC's GBDC's sequential spreads increased and driven impact an

loss unrealized adjusted This an XXX% X.X%. due unrealized had of discussed net primarily a credit earlier. representing the was quarter-over-quarter. of share, EPS increase $X.XX, from GBDC ROAE $X.XX to appreciation an per approximately represented David annualized per share of realized sequential migration limited Adjusted and

of $XX.XX. we to pleased per performance, backdrop. Finally, by the the solid with market context are reflected current and NAV GBDC's Overall, quarter especially the in and results increased share believe $X.XX macro

turn the On Slide changes quarter-over-quarter you to that quarter. NAV can NAV to see now going I'm this X X, increased drivers to Slide share. of the walk through to per to $XX.XX

NII share depreciation And finally per and $X.XX the $X.XX paid was share the of share unrealized walk loss on of of drove offset Let's per share. components. $X.XX depreciation NII Adjusted by a realized Adjusted was investments. from net net $X.XX per company through dividends. a loss per

key a are there slide. think I couple takeaways from this of

per dividend. allowed share excess This to unrealized NII First, growth $X.XX depreciation. us GBDC grow GBDC's some to GBDC's NAV above in generate realized adjusted income net strong income excess its and per despite share of enabled

it's now. At earnings so constant near-term quarters. quarterly to to prudent future for dividends think hold GBDC's to the time, we of we strength at economic in Given our continue in our the to same forward-looking plan cautious outlook, the approach potential, share reassess $X.XX believe we per dividend

per Second, flexibility our to repurchases by quarter: Simply back shares there's were balance a new Share buy gives believe share continue we is the us accretive this QX sheet $X.XX think opportunistically. calendar share. valuable repurchases. line in on NAV item NAV put, strong to GBDC's to We stock undervalued.

term activity in as funds for new commitments to fair slide Net our delayed investments now draw asset new exit changes of Turning investment modestly loans. The one-stop predominantly of loan fundings existing mix investments. slide the exceeded middle summarizes this origination of and remained XX. and sales value This the increased quarter. shown

on of the originations. average wider prior points on increased XX XX Looking spreads weighted basis by base due slide, asset points on average the and rates this over bottom quarter new X.X%. quarter, X.X% the by to combination a rate to at weighted from the The spread investments of new increased investments higher new basis

for believe remained volume we the deal market remains happen, we the overall did and lender expect that deals continue for future. muted, friendly that While to foreseeable conditions

Slide mix. XX portfolio shows overall GBDC's

consistent at continuing one-stop to investment XX% As see, portfolio quarter-over-quarter, loans fair portfolio value. you of remained represent around breakdown can with by the type the

that average slide highly size investment with of points. On XX, an portfolio remained GBDC's diversified Obligor approximately by basis shows XX this

of March comprised in As XX, XXXX, what believe our loans be floating and industries. resilient XX% senior defensively positioned rate of secured portfolio was first of investment to we lien

slide Now XX. let's to turn

the quarters, asset-sensitive the the As of rising over of interest couple prior we in sheet. nature highlights environment explored GBDC's rate balance detail

the start dark our is income. which blue Let's investment with line

investment income amortization teal rates. increased points by points. basis and investment fees As the discounts. cost of income interest contrast, debt basis only rising line XXX our increased XX primarily from a of GBDC's the reminder, includes By

billion coupon average of have weighted Our that X.X%. are fixed our cost a benefits of and unsecured notes $X.X from meaningfully debt approximately of rate

the prior factors adjusted gold Combining We line given to as our most these some by two to has believe higher basis base investment over GBDC's quarter. still net Fed the share rates room funds spread reset weighted increase. points per recent and increased loans XX NII grow the existing average

from growth rates the believe Fed here will we further. modest likely raise However, to unless be decides the

Form You'll sensitivity see asset on additional in XX-Q. details GBDC's the

I'd also environment opportunities to note funding provides re-price loans to the at current time higher time lender us existing Finally, that from spreads.

For will borrowers anticipate we additional provide This example, in over financing portfolio upside is flexibility. or a when near additional want continue term. dynamic to the the existing

I'll quality. turn over credit to Chris to cover now it

Matt. Thanks

non-accrual move look to at March a slide due as number one to On of which the compared XXst take decreased see XX closer metrics. and XX, you XX, zero to Let's December from XXst investments of quality on XXXX. the can of December write-off value XX non-accrual a company that as had of of eight nine fair slide portfolio to investment, and credit

value XX, modestly decreased the as investments of percentage portfolio our March of X.X% XXXX. of at total to XXst on of December from fair non-accrual Additionally, as X.X% measured

and they or or expected XX% means are XX an expectations as at On have better materially internal performance been lower, two mentioned strong expected performance four or of internal than at performing performance of Approximately underwriting. relatively X.X% of of stable. higher, which rating means ratings internal slide earlier, David have are an and underwriting, only performing below they which investments as rating investments have

increased rated expected we three cycle as bucket the in modestly where internal sit current to performance XX.X%. Our given

to expect expected to recall You'll and When or loss. and enhanced it or below loan mean three, a three migrates category oversight loans necessarily automatically performing expectations. we default that monitoring triggers doesn't are that are a below expectations category it perform

are we Given in potential that outcomes the more currently in earlier, of current dispersion described economic similar conservative historically been have investments. and David evaluating environments

couple other We're key XX, statements, through slides. of going past to mention takeaways have and On XX XX. on slides metrics. skip more just slide from These a slide history I'll stock GBDC's million dividend detail you financial share to executed. decreased outstanding shares this that outstanding quarter common of is XXX.X XXXX. as a XXX.X can XX, outstanding million buybacks This shares December from result we the of see GBDC's of shares these

noted XXX,XXX. addition, filing, XX-Q we repurchased as May over repurchases additional shares X, In totaling in aggregate resulting our in through share

slide outstanding shares share from on believe March to count during XX, note didn't the the and equal. repurchases Please in fully made quarter. Xth the weighted accretion share else We impact of perspective quarter all the through the will full during common flow subsequently be through May reduction GBDC's next XX quarter average earnings beneficial an the

this equity on XX on Finally slide past return was quarterly X.X% quarter. GBDC's note that

We has structure. commitments meaningful it ended are meaningfully our last quarter back over-collateralized from embedded to our revolver XX and corporate of before with provided dry XX. David its $XXX GBDC We almost the in and by cash, The powder slides on cover funding unrestricted unused, adviser. undrawn believe value million the unsecured want slides I revolver handing to

investment robust ratings represents structure unfunded our GBDC's that liquidity current important is three S&P. from underpins grade element and funding the times Fitch, over an commitments Moody's, asset five and its

to extended GBDC's group. to quick corporate bank revolver. XXth, March we revolver its On wanted related with perspective share amended and also I some GBDC's

of First, revolver to two March the XXXX. term the we extended years by

aggregate the million increased $XXX we Second, facility $X.XX commitments to billion. by under approximately

decreased pricing, SOFR basis related while credit XX the all to Third, constant. adjustment we spread material to terms, other including remained points,

power the Golub with the brand regional our transaction lending think despite demonstrates close this turmoil the bank of We community. bank to ability

which March of funding cash XX% debt-to-equity maturities our XXXX in XXst, X.XX of As have of form net was the XXXX. debt XXXX, of of unsecured ratio in GBDC's the times. and is notes, majority

We rate. did with floating of and not coupon to issued these swap fixed rate a these notes out X.X% weighted average

which was among quarter of BDCs. Our X.X%, weighted publicly-traded average the March in of for believe we XXXX ended lowest debt cost group is peer the XXst, our

back remarks over Now, I'll it Q&A. for turn and closing to David

per at Chris. To up, starting perspective. GBDC's XX is ended the well performance. excess was see performance was and well of sum credit March dividend. The strong And share a generally in we're NII same our to from portfolio borrower Adjusted Thanks performing the for quarter it more was dispersion in solid. time,

more ratings and preparing loans from exactly to in don't future what a and future know credit migration performance We internal bring, stress we're the for is Category our more to on going of future with X X X but Categories quarters.

actions we remains vulnerabilities Our take to game detect plan the It's same stay corrective realized talked about last to laser-focused avoiding quarter. and losses. to early, on early, credit

we've we over credit keep losses we XX large low, portion unrealized losses last months the long As reverse. as see should of realized that taken can a the

and industry relationships I long of part, our low for losses. our the the Finally, market-leading think to credit our GBDC reiterate well-positioned powerful advantages want is In of record Capital expertise, strong scale, that platform, exceptionally deep our competitive long-term. this and the with borrowers, we reflects sponsors Golub track

were prospects. kept of because the conviction fee of of and And GBDC's and structure. lending sheet to ourselves the constant our fiscal relatively we've environment. NAV in We to in a balance And in stock position build GBDC QX buyers offense strengths to this on dividend the go about part attractive company's level reflects

the open With questions. for that, we'll line

Anfield with Capital. is first Cheesman [Operator Instructions] the Raymond of question from line Your

line Your is open.

and increasing wondering With discussion Golub? in needing road might you have the several down might has supervision. months, in it all think non-banks come more last to there impact how the volatility what about been Washington the I'm

for question. your Thanks

regulatory the changes of about context interesting these frameworks. amount years you're about XX the think to it's of history. And in I an increasing right discussions discussion last to think of potential there's

years, the equity-backed less the XXXXs, lending involved a you what's to during If through early regulators course loan over savings of by regulatory the crisis in and last about think happened private XX be to with we've banks the of moves legislation series to starting changes and get companies. seen in

saw the the in actions post to lending of of little ownership of we loans. particularly loans think avoid in the bank significant that's of be a private We and it the – bank There's deposit-insured saw And been telecom in these of phase effort equity-backed to saw it most private concerted early Dodd-Frank. of degree We early relatively three in different result in equity-backed very The intentional. HLT the to the the XXXXs objective regulators to maybe It's kinds of privatize these XXXXs. debacle companies. it I regulators companies. to having federally been owners the institutions is

the back of goal I banks. like what the be to think Golub goal of And round of regulation. a bring lending kind would vendors is I'm puzzled don't by to because Capital the this We the we've Bank same Bank First same have don't Republic. Signature that don't use or case deposits, have we in risk dynamic. bank-run seen Silicon of Valley don't the new or

question your think I So fair. is

We are this. hearing about more

to a achieving are. about discussion are. there's potential I think think more there's need either. yet goals about the what modalities about for then the those going And for what clarity I don't be goals

I'm necessarily that you moment. at If into been while don't rollover you to talking follow-up. debt what-have-you category a support kind you'll the coming the XX the Wall wondering of about on is private Again, what Street the or asset think have that about over this next me to there's I private of swamp helping capital I risk-return attractive months. And think to XX CRE let to CRE getting basis, rescue a heads, Journal,

very interesting question. So again, a

observations. few we us We real do You're lending. make But we're lending real a doing of right, not one that's capable estate estate to directly don't don't think relevant I'll because well.

points Fed, to regional at commercial local local real local If the industry you and data of largest real lending. commercial about estate $X estate of are lenders the banks. out trillion That look to data the the coming

likely going the out to that it's think bank and bank reduce level there's that I local those regional and seen to that be failures coming banks runs of on pressure we've of last lending. to XX years. Partly continued function banks consolidation little in We've the from this over over of a is going banking the to gone be XX,XXX sector. a X,XXX

think recent I the in going troubles that accelerate are to bank sector trend.

there think leverage commercial going by we're and just recent banks reducing estate lending see are the by banks partly, are from cautiousness. increasing partly, to lower And local regional to I respond because fewer regional going local to and and banks. So, events real their

I in lending a need to think capital the be going for space. So, incremental there's

logical be creditworthiness. to estate potential And availability of of a look credit that think not just increasing is as This credit. capital. don't going commercial also trends credit debt real We've to a country need to just got there's think this -- to an of it's real issue it's private the expense need in for There's interest declining I going issue and of equity the capital. more seeing private this estate a lot I isn't segment trends. rent because easy capital. more of source be an is for a

much. very you Thank

next comes from Your Ryan Lynch of line with question KBW. the

open. Your line is

given appreciate choppy you've I go the kind of your Hey, really afternoon. guys portfolio economy on we all these as times. good viewing comments how are the and you through

that I and to portfolio current lend in as your in overall segments sectors, are performance. environment? that a of individual your individual I look at portfolio that hear affect are this returns you noticing there has love business the know different very take any having But step sectors each circumstances in kind to strong you you would and back just its

into your the And that sectors And portfolio XXXX? is then currently are challenged continue more and the you run conversely there noticeably challenges expect to any are additional throughout in expectation that year? throughout to

from hear I'd you observations. Ryan. couple of Sure. a Good point to to

is strength a several there Capital this Golub can companies. one Market software visible. last everything's trend some You're a trend you mission-critical Report trends -- in the think and surprising, granular at And situation level, numbers in this see business-to-business are don't I are -- is One that right? but right it's the Middle sustained for quarters,

their If they're the improving that you think clients. selling aimed these efficiency services companies, of about are at

to their for more clients business as clients are and pressure achieve their drives efficiencies, prospective actually under it So, more them.

But we're see think to to companies know the I We're falling business-to-business meaningful technology the in that's strong sector we're consumer-facing consumer-facing demand. lenders consumer-facing reasonably So, happening likely interesting with software. large results software not because continued all space. in as experiencing in investors seeing companies. software what what's we It's been not

consumer-facing So, and it's software. an interesting between business-focused split

are Second seeing care trend as they're health a degree, Medicare, in very I'd costs that insurance challenge, services. to payments quickly identify some and focused those changing. price service -- on reliant are from it's managing that is on payments companies, Medicaid health The heavily as their are companies

primarily dynamic cases filling many because similar we're of go up positions. costs in seeing here. We're So seeing a costs wage challenges

has going And with increases continue little the see slowing firms a don't And healthcare in I pass some wish had. going They companies seeing challenge. that. it's economy fully some I a selectively see think we're they have but it's they easier unable power but cost to these to we're get been form – going continue we're through pricing pricing. the the with this simply to that same of think higher those not struggle service to to to them of all

a now. growth are makes slowing. Multiples curious are rates wide, it's sense. not Okay. I right on are pretty been just – obviously, high, environment base that high, slow spreads is Yes, was necessarily

type volume out So do marketplace? that will there And consistent companies change maybe a you a in to then what need before what it's one. things change has – of I deal for think – current multiple number there level just think think you transacting the great more to will do be you transact. don't of of number there's and be and will M&A curious, not time I'm see and environment really this companies two,

Sure.

deals. XXXX, XXXX base. but volumes small from slow, fact And a very We a It decrease the large just small increase decline. very saw to across summer deals. saw and part very again, of point low, runs have little a saw surprising. and we share prices not decline dramatic I first costs. a we been entirely It's not your of it's not in the financing M&A a or think public – So in early XXXX it's in And spring of equity the board. significant

we've to agreement before, to recalibrate a on sellers takes to constitutes pattern and for value. So that come typically bit when again of and seen what it time fair buyers

I it in in right some changing deal think is activity, pipeline. our seeing now. We're improvement

I eager think private done. get sponsors new cases equity many are in to deals

I testing equity think the by market bringing some firms performers. are strong for out now private sale companies are that

going in I second also year. QX think of calendar an So over help if the whole improvement the it's we and to of particularly Ryan, start more But course picture. lot, over us the would saw the half improving macro it a

if more the have are get head saw continued interest could XXXX. that we signs to comfortable in peaked and down deceleration So and inflation rates in going of people already

I think that would help a lot.

year. a both What the I assume estimated be I'm know both repayments probably addressed remember they that but vehicles, And would in sense. probably you do at capital when replaced? assuming reinvestment with? depends of -- they Yes. point both this I low there's their securitizations has is this not you today. this replacing period term, the replace those occurring of timeline from efficient repayments curious marketplace I anticipate sort been as more can. a then – would to Makes don't less last at repayments level funding each or But And of efficient. some if pretty I I those point. of become past that assume lot to just you're think want of in is those what going if in less in question there do there's those I'm as they vehicles, the would on source. I which just And exited your exited become longer one any earlier

Chris enormous Ericson as got liquidity. said, Yes, we've

So, anything. there's no rush to do

two are It's that so good do correct You least we that are that time them over to at it's are very a some refresh And reinvestment attractively problem. in priced, of period. have reinvestment now period. of are out that securitization their not but

We have that to early. ample those liquidity and prepay manage no there's need such this

below them to prepay market We sense pricing in don't at some point is on as repayments, those the will we securitizations. future make want is where it because today. to the them But see early refresh

bank having like of of the securitizations revolver. combination different a mix of I notes kinds a unsecured and and financing,

think well. combination that works I very

So, of balance with want manage the continue three. to we'd to a sheet of I'd right-hand anticipate side mix the those

Okay. Understood. I appreciate the time today.

question of from Dodd next Raymond Your comes James. Robert with line the

is line Your open.

most Hi care services. when one go care terms this margin the guys. in I pointed expansion health mean portfolio, just I your I has look index I the back want health to you visible of we trends out of mean the at quarter. in Altman recent seen in think to

So, there’s that.

X% care any discretionary are in between of or learned portfolio? given connection think you do mean it’s COVID issues, thought Is I there mean health your any in color increase – than is between the I more as those consumers If that some industry Category any there they past. assets X connection anything maybe there? – years things and in kind I of

say, them fair problem a anticipate bit. trend care I to a we've sectors. it’s problem credits, Robert, I that's proportion of that's in our – higher credits than going a continue in good I entirely. think credits we health -- but avoiding And had more other at think for We've that don't we’re had avoid to

Okay, appreciate it. you. Thank

Your with from next Wathen Fargo. Wells question Jordan is

Your line open. is

Hi.

on on something portfolio your US? concerns I'm behavior there risk you if what view views businesses more or growth the you Any credit the on you mentioned from outside this give as risk. color potential international the than international or different exposure can curious You've watch as just currency you in in about particular others? sponsors internationally,

Sure.

for flash interest to that US forward raised interest back most expecting And rate those has had XXXX, impact rates. the rates companies. rapidly, challenging significant rates very hedging has turn not movements ever summer a that faster were of many before. currency on is than raised in changes. exchange we've companies That believe very So, exchange very We

and So look they currency a in we found with There portfolio well. revenues structures factors for at whether to structures currency focus in companies second take real wanted determine were where the some our cost new there a expenses and a other were to as in spot. difficult had on revenue one themselves

put in to the focused FX. the associated changes found Ukraine related ourselves in the with that also the in patterns, We we war list, but area war trading on on major Ukraine, was and

That’s All me. right. Thank Great. you. all for

I presenters no closing to remarks. will There further time. now for the back at this questions the are [Operator Instructions] turn call

for your all attending call, please in to quarterly our prior time. always, to out. you We talking reach you to scheduled And today. forward Look have next feel all to free you as months. three Thank questions Great. appreciate any should

gentlemen, participating. conference This for today's Ladies and concludes you call. thank

You now disconnect. may