Golub Capital BDC (GBDC) 21 Nov 232023 Q4 Earnings call transcript

Hello, everyone, and welcome to GBDC's earnings call for the fiscal year and quarter ended September 30, 2023.

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.

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

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

is recorded. reminder, a As being this call

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

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

For me those recap investment of GBDC, you who are start on new to strategy. let quick with a our

backed investment on strong sponsors. equity since providing Our healthy, partnership-oriented inception focus secured senior been, are loans to to generally and by is, first-lien companies, resilient private it strategy middle-market has that companies

our call. earnings an we and release be referring presentation press September quarter to our We'll for posted ended year and website. we this Yesterday, today's issued fiscal XX, earnings on presentation the during

as with headlines, and Chris some I'm summary through the the questions. I'll more Matt Then to detail. lead quarter and quarter. take the period. of going we'll for up performance And with to a that, for then to start, wrap financial are go into going our in going outlook for I'm usual, results coming finally, some After

The headline is fiscal had an quarter. that GBDC fourth excellent

XX. of the fiscal GBDC preliminary October glimpse on QX in a this that got You've announced results

in of some and were of accruals, Credit earnings and $X.XX, NII this decrease share saw of on equity adjusted XX.X%. highlights. touch represented income saw internal net was We on share. note, stable equity we the This quarter to $X.XX a return on adjusted for gains ratings. $X.XX. per had XX%. a very We performance me results Let non unrealized of share net strong. per an to realized Adjusted average corresponds came return of Also the Adjusted investment record. per an

$X.XX as a a X.X%, quarter drove XXXX. per $XX.XX These increase excellent of factors quarter-over-quarter September very off capped NAV results fiscal the sequential strong of GBDC's share, altogether increase to NAV bringing XX. share a in per for

Over adjusted share is $X.XX share, distribution of paid. per $X.XX share, we the NII earnings adjusted per of of $X.XX year, saw per

quarterly that perspective. GBDC fiscal per new XXXX by increased $X.XX best recall We You'll years supplemental from our saw year fiscal base strong I during results. distribution distribution introduced the credit share as a framework. variable a view credit of one ever GBDC's and

fee from manager, we advantages X. competitive And raised we Golub annum, rate GBDC's year, that We strategy. per the the Capital platform, shareholders. investment the was of X.X% X.XXX% our reduced effective to during executed the management base July for leverage its permanently short, investment bar on and In

our floor let more results through to me detail. that, hand walk Matt With to the in

start going I'm X. Slide on David. Thanks, to

As XX record previewed, the earnings setting. David just GBDC's for for quarter ended September

$X.XX an per NII XX.X%. adjusted share from per NII the the of increase and share share was $X.XX This Adjusted adjusted XX%. NII. $X.XX, adjusted Net sequential corresponds an ROAE XX% increased to share quarter of prior from of per ROAE prior to per income in quarter's represented $X.XX a

of GBDC's credit foremost, a unrealized strong and market. spreads share. First gain had three net credit due record driven $X.XX GBDC both on realized key fundamentals to was in profitability credit. gain tightening the by and This investments factors: was per and

higher base continued was rates. driver key second The

update announced of benefited a and generally base balance rate previously reduction QX from the quarter. sheet The continuation from management X% the fiscal Finally, June fee annum. reflects per to GBDC's trends XX, portfolio of XXXX

sequentially. funds by million $X.X Net declined

fee Its of to muted. the first investments pace income This repayments perfectly to for activity originations returns. deal half calendar from While the strong doesn't relative in new remain fine we is on depend drive of GBDC. saw a modest the uptick or year, in QX new model

percentage investment debt credit decrease. GBDC's performance Non-accruals portfolio to continued a as Non-accruals overall to XX/XX/XXXX. X.X% of investments strong. total X.X% at from of remained at The cost decreased

debt to of at X.X% fair total As at a XX/XX/XXXX. X.X% decreased non-accruals value, from investments percentage

this in context, are put they in where ]. [ June back were of and to So non-accruals now XXXX March

total remain internal of ]. in to [ XX ratings, lowest strong. level is March points Turning performance rating X of Birdie Xs represented Xs these basis since and This also categories Investments the X XXXX. at the and portfolio

distributions XXX by year, is more to basis increased NAV higher Higher share delivered X.XXx. start period. sequential per this of think at combo. to leverage GBDC a modestly good than the declined a $XX.XX. higher now per as NAV, during on higher basis shareholders than net basis share and NAV And XXX profitability this the to even is points points we obviously finally,

Turning XXXX, December XX, XXXX. distributions. shareholders regular to a declared per Board on now to of record distribution $X.XX share The quarterly as of X, payable December of

in base share distribution per quarter XX/XX/XXXX. from company's share NII per the GBDC's distribution, a quarterly share distribution exceeded You'll in to recall resulting ratio of increased XXX%. Adjusted that $X.XX the the significantly per regular coverage ended Board $X.XX

Moreover, of framework based payable December we X, a December to XXXX per Board on as authorized $X.XX the XX, distribution supplemental new quarter, record on the also share, XXXX. shareholders discussed variable last of supplemental distribution of

plan our income, GBDC supplemental line As how excess sight distribution one give a equal shareholders the framework the generate with the hand, resilience the continue balance of on of growth NAV all will clear variable else goal is likelihood on to a reminder, to focus hand. on we into and the to that other

approximately provide of over corresponds XX total, distribution Board of distributions results. In per $X.XX QX share to framework the presentation. approved about XXXX. I'm now XX.X%, yield to the based fiscal in share You it respect dividend of of our GBDC's going NAV annualized performance. This of detail can an find additional on as Chris XX, on to Page on supplemental more to turn detail earnings per the variable September

Matt. Thanks,

X, share. of The short-term can paid per adjusted NAV per high growth earnings of spreads meaningfully NII and a rates, Matt into out. higher dividends credit level low-cost leverage $X.XX, attractive Slide record profile combination see locked-in key drivers drove share solid the described interest how than in to GBDC's translated you Turning just

addition, unrealized per contributed gains. In on reversal realized net $X.XX depreciation and to of unrealized investments share the of prior adjusted

asset drove prior value share results per a $XX.XX, these the Together, to increase net quarter. from per up $X.XX share

quarter points Let's Slide our start the the financial which covered key origination we'll details through Slide go XX, now already so for of the results for on GBDC's summarizes XXXX. the September X, We've activity XX, on quarter. ended

changes were and outpaced positive investment fundings Net investments. sales funds modestly by existing new of commitments, loan fair of draw of of growth investments exits value quarter-over-quarter as term negative delayed fundings was and

activity the deal year and has remained quarter. Market-wide slow been in XX slow last since September

activity be QX event. we QX, and in saw in a likely our for is a that more calendar uptick a pipeline deal our XXXX While is modest to significant sense calendar in rebound

Golub X% this selective, quantity. typical deal reflects environment, Capital remained new rate selectivity That's our approximately reviewed slow lower has deals than focus closing X% Amid X.X% our of relatively on year-to-date. over and to highly meaningfully calendar quality

loans. remain new of one-stop The the asset slide, predominantly of investments, in the shown middle mix

new quarter. spreads investments, slide, Looking which at by investments of tighter basis the points tightened XX to new primarily The the was the this by average decreased basis on on rate weighted points XX due bottom decrease sequentially.

tightened relatively but are equity new lender-friendly. terms transactions still especially we consistent in generally of definitions, context earlier what other Spreads EBITDA remaining deal in still the they're since on seeing like and market. leverage have the is This in year, the attractive, leakage more with

overall shows mix. GBDC's XX portfolio Slide

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

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

cycles. which believe previous believers has credit continue through served position credit in and the size, to context in be We we cycles in GBDC are asymmetric future big of important will risk moderating well credit

our of be first-lien investment September XX% of industries. loans to diversified resilient consisted a XX, of believe range As we what floating rate to portfolio borrowers secured of across senior XXXX,

asset-sensitive on interest rates. showcase sheet of economic XX continues in Slide environment rising to of GBDC's The analysis an balance the nature

to how blue which chart. walk Let's the the with our is Start yield. through interpret investment income line, dark

yield amortization and As includes a discounts. investment income reminder, the fees of

rising increased investment the deferred quarter. returning interest basis nonaccrual X from during status yield and accrual income former rates to recognizing by from XX previously investment points primarily GBDC's interest

our contrast, cost the By points. of debt, only basis increased teal XX line,

average investment the weighted net increased basis gold points spread, our result, XX prior a the line, by As quarter. over

I will Matt. the that, to over With turn floor back

Chris. Thanks,

quality XX Let's take move metrics. The a look on XX and remain credit is credit solid at message trends overall that to Slides stable. closer and and

of addition can which in investment to We XX, decreased you the sequentially fiscal debt was returned investments see points X.X% total investment On basis to by status, XX nonaccrual to accrual non-accruals by QX. at offset fair the value. of X status Slide X

performance internal XX on Slide in shows ratings GBDC's trend investments. the

or rated they're around September XX, of As X at or expected X, were XX% which GBDC's XXXX, means performing than of underwriting. expected better as investments

of X, The remained rated impairment, at the XX.X%. The very most basis rated low loans proportion increased X credit at X are to loans portfolio to we value. modestly significant believe loans likely which fair the see of are XX proportion and points of

X it our expect the doesn't scrutiny a oversight. perform loan that necessarily It to You'll automatically conversations, expected to heightened we below Category are expectations. Category default triggers in or below or X, loans are prior migrates performing When loss. the recall and expectations mean

be for scrutiny to to moving resiliency of early on prudent enhanced positives proactive miss XXXX. it's down of think the ] for X. the the work we opportunities we portfolio first idea environment, that [ than in about rather QX Category motivation uncertain today's us We'd of described have airing false also Given side was for intervention. This

dimensions, surprises that new resources meaningful on designed earnings, we our potential You'll quality see a vulnerability and to to for recall credits that focus for more haven't and meaningful We this our recent inflation, seen on portfolio middle vulnerable example, was for us of our portfolio shoring review, year-to-date. of interest number screen in market of resiliency didn't problems appeared ]. work [ rates, quarterly

[ we've credit believe interest Obligor-by-Obligor quarters, of of foundation to more ratios evaluating for our that backward-looking and rigorous financial believe managing risk in review results. are approach we ] don't coverage As is multiple as issues. We opposed prior a metrics useful forward-looking on particularly portfolio average discussed dimensions prospectively identifying the historical present for

based applied and around provide September of of specific XX, portfolio [ companies of wherever we on providing product That available said, us want the some the statistics in context additional as did to portfolio some XXXX, portfolio-level ]. from information our to spirit

below of Let's coverage. The start company interest X.X% GBDC a for is investments borrowers weighted and portfolio portfolio value coverage interest X.Xx, GBDC's at have fair average Xx. with interest ratio coverage

rates, to again, we rates, higher base our potential how even as wanted We only industries. We of our us context XX on XXXX, the proportion would When we the fair change some base higher currently Xx based interest a of above on to and rates. to XX, value to basis attribute September borrowers points stability in for share also interest XX%. to expect and coverage information current might to focus with available resilient of portfolio grow coverage lending resilient adjust at

underlying portfolio [ It as as reminder, are of then presented. a we period information ]. portfolio weighted loan-to-value on responsibility lag and Finally, upon on the [ XX% was companies. average value As are often portfolio based The September received leverage credit these provided share to is of a financial metrics from based XX, our wanted ] to the the the XXXX. fair portfolio for of compared the

XX on Slides other key investment through Okay. liquidity wrap statements, Slide on We're detail XX by history this up XX. and dividend slides section I'll going and capacity skip to GBDC's financial metrics. These have and XX. GBDC's reviewing past more

on XX. takeaways focus Let's key Slide the on

majority by X million notes for ] [ and rate out cash, its meaningfully liquidity the our of of almost over-collateralized represents book commitments $XXX ] liquidity maturities in unrestricted in of for with notes floating issued cost form April and that of funding of have fixed coupon commitments and robust investment-grade low and almost provided unfunded important the Our Xx of weighted our X.X% stop them revolver believe ended of which funding average cost the The the the adviser. GBDC's unsecured due is any S&P. We with was Fitch, amount unsecured did asset and diversification, among . We debt exposure. lowest X.Xx which debt on quarter current ended in peer weighted structure XXXX XXXX. ratings our in undrawn revolver an group. notes, from flexibility of XX, unused, our average Moody's is is not element from GBDC's our of our credit unsecured underpins the of [ rate X.X%, a September XXXX. quarter XXXX these we XX% the and

would Moody's GBDC's October. in outlook on upgraded I Positive the ratings to front that early highlight

GBDC a Fitch companies in As select reminder, Positive. think outlook at has puts We GBDC's regard. in this also this

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

Thanks, Matt.

had So quarter And Higher just XX. to base September and the ended results, the credit excellent results. they working processes Capital's helped, a was sum GBDC's Golub up, an were lower year didn't management driver fee of an GBDC result strong also happen, credit rates fiscal excellent but strong they helped, again. key

Over last results 'XX class, a have been in has best company, years credit XX different. the and that GBDC been was fiscal its public no

sponsors. resilient opportunities team to to lend backed resilient origination us found in by Our businesses top-quality industries

wide borrowers of over basis, X.X% different range they underwriting selected shows it carefully to deal across year-to-date a teams Capital teams, are selectivity ratio that prioritizing that us pay quantity. likely a on quality Golub scenarios. just of were Our back

monitoring, name-by-name And emphasizes early careful portfolio after always our intervention it portfolio reviews.

up wrap and want talk I'm talking optimistic. some reason about for the to cautiousness. the outlook. for our me the the cautiously by Overall, optimism reason about Let both I more

economy some improvement a positive. first. also activity, that's The middle in to market to upside, We're a M&A talk the surprise continues also about Let's seeing that's optimism positive. the

I that's stronger, Capital think third of been a really positive. position has the competitive never Golub

also perspective, credit there some are signs. a From good

interest preponderance As margin a for And for rates vast is Matt a burden gives safety. the while of reported, charge is and us the the GBDC, fixed performing higher flip this well. side greater at extra borrowers, higher of portfolio income

Finally, a worth companies of are our we handling how portfolio higher have now year's about over rates. data

we on think it. that, most a on we so where vulnerabilities see have likely we where And good handle emerge. are we're to And

Okay.

reason So the for that's optimism.

Let about me cautiousness, talk the cautiousness. now the why

was in I a I'm being a wrong wrong post-pandemic wrong then stubborn. anybody's about later. these don't was thinking also trust being recession Consensus about predictions we'd inflation this boom. wrong macro It transitory. been see inflation about was And cautious It because wrong It's the days. year. it lot was

need things future. very he especially it we the Yogi think we had said, predictions. humble I make right is implication, to days hard, when By be about when these Bear predicting

true today. especially that's think I

that do macro different Having mean range particularly said this, leads are environment we're very across the today investments. investments, a to I in, investments it unpredictability that into resilient of investors that value-resilient the will well think me of By scenarios.

exactly this investment. I think of GBDC is resilient kind

We've detailed resiliency sponsors potential resiliency with issues company-by-company that which engagement partially stepped analysis is run previously up on Our teams, to discussed, the arising. and now we attributable see where we also a quarterly management we our basis. for

earnings so. rate a power the to environment. ROE when variable GBDC's earnings well an interest any policy the in like the fee raises GBDC's new environment And paves this profile interest distribution prudent distributed balance sheet of do rate new shareholders company to positions for permanently to asset-sensitive GBDC's supplemental GBDC's power more be in. for way base lower we're rate perspective, high very From management one

they well now. has kind environments for one I like by go and think of we navigate credit raising for what and period. we're staying in we continually the that's that's now, by XXXX, laser-focused shareholders, to how what the Now always don't the GBDC in caution, hand optimism hand But in uncertain actually and Pollyanna, me on coming done in we're mistake bar right doing plan some did that's

me With for the that, let questions. open floor

question the O'Shea Fargo. with comes from [Operator Instructions] Your Wells first of Finian line

David, some at end. the appreciate commentary of I the macro

terms meaningful that M&A, there's inflows good do non-traded green you Just can shoots which direct the against impacting into BDC seeing And we're think spreads juxtapose the we're activity. M&A a light for that should fundraising? that and you lending today? seeing bit. are powerful like wanted to sounds How there channel? be It around drill is in in enough go very perpetual to of the in this But

Thanks, Fin.

it's interesting. So

some right seeing are We forces countervailing now.

done The a lender-friendly even private ability particularly for the borrowers robust hand, consequently, in On interest and credit wasn't meant one of of price syndicated there BSL Generally, a say, there was to and private markets. summer dislocated market and rates 'XX equity the debt lot . And was slow. a in we demand of in as though That to from. for a markets, market. broadly in swoon market a other environment. deals us M&A pool robust was for new was and there the in of the relatively started -- private players credit get deals consequence off, choose

I In in markedly say, for industry the than M&A will us the I a QX standpoint, several for the higher And have of we've think pretty significant would an the X quarters be and seen from activity. weeks, last, origination level been. last quarter a increase

seen in to that's strategies very of aimed know, series about large market. they Having whereas I but that, we've it's lending we do, of of at of -- this that deals, direct in XX% have point, competitors basically whole what BSL what a at said your replacement we about aimed lot do. fundraising it's a don't play where market, We XXX%

very it's shift some toward months been but I spread a think in compression terms seen And do now, that's borrower-friendly accelerated and or the that and more activity trend weeks so. significant X last space. We've that in for

I is on do a our focus reports problem earnings the quarter's next this in the on traditional great spread because focus market. compression you're indicia of not from to larger think to the start who us, middle For is players going market. see

you also, helpful. gave appreciate color I And the coverage. That's on interest

the not very that a 'XX, interest And sort sponsors money much, that's is capitalize what of put see seeing companies, with you if any do topic. of that on as are high? is remain you the to if sure I'm names sponsor Just and the coverage, money tighter time spectrum. interest extent these come a frame that To For make-or-break rates in? up sort need -- for XXXX have color and

about different sponsors liquidity. tight number seeing that a is or how seeing are undertake seeing on strategies step interest are create equity to a coverage companies is we're cases. So companies they of the number the question put We're charge answer of in order and coverage, absolutely what other in also We're managing that? approaches. fixed large up And incremental

Sometimes note holdco a or pick-preferred that's new of the creation issuance. a

borrowers cash Sometimes better. look it's free the of a of our more to generation tight job growth. Growth formerly good also that's creating ratios has many enabled done for flow

approach different liquidity pattern different seeing one variety portfolio clear there companies. companies think in don't this equity we're of So I I point being addressing private needs in their think a pretty do in constructive that ways. is in to. general, are, sponsors to

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

the on quarter Congratulations quality. on the credit

market So of and Fin end also the One bit little at more a comments of end of borrower-friendly your two that is market. and to the shifting are spread the follow-on terms a some kind compression that questions. the to you've there in David, seen that upper

or think total and you've but Matt seen the prepared the said spread that were definitions overall remarks the compression, leverage EBITDA it was Chris in maybe I favorable that overall. still

imply the stuff. And shift so the in would XX% tend other of I seen the but you haven't to that that bulk,

between shift terms going to to be even and the set think in the Hopefully, in will How are XXXX? structures? the much going that market, a continue do Or that they're core end to we you you clear. middle is core converge question into market more go diverged top of it's as of the XXXX, market middle borrower-friendly confident more the to

as that the pendulum. in terribly And more think swinging Robert. syndicated market first more Today, tends a always it, a conditions. happen active. and describe to would swing always -- between not I borrower-friendly the is There's broadly market. of it There's lender-friendly

market it in lending BDC So larger middle these direct the market, the the through Fin's that's think I the really market. And first seeing seen we're the are to those that structures. inflows, end place non-traded point, place and BSL market replacement don't capital that's disconnected. larger is most inflows the of the

modulated see I in to And again and market think I in think XXXX. things the degree. the a that's to a pattern middle we'll happen more tend with lag

then do off notes, outlook? the liquidity us one that 'XX On second Got to on revolver unrelated it. unsecured But positive just April to to. on your the pay is got you've And if plenty it give that. have of what can you an with mean maturity. wanted the you a you thoughts I

you unsecured outlook your shrink positive presume to is. mix I much want agencies of that don't the too rating

costs are fixed So to to that some if like you can on thoughts? were rate, higher that? anything looking would on but borrowing refinance you that us swap give And today or be you obviously,

actively So we're all good questions looking at. that

going the unsecureds I decision right-hand sheet. connection right meaningful be not. maintain when think always your really time, the issue [ the we with to a GBDC to statement is ] on correct into to right and as of time over issuing, is balance or that the is part floating looking And swap at want whether in side we're to

are active consideration. I under all think these

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

of last maybe scale, but When question maybe I I to that credit loss those been quality. curious, they've just I on some related bottom kind rated line over meaningful look the overall of credit your there. monitoring a statistics, really your significantly nonaccruals worries X doubling But and really, are pretty are sort of a year. First a at just been in portfolio, rating I'm there aren't good when standpoint. uptick at your was credits credits portfolio look in had there's underperforming, Those

investors think how have thus credits how should has about rated over So maybe should been that? investors but doubled overall last think those the credit far -- about fantastic X year,

conservative. naturally little us. it's great challenging because question, And one for So that's it's a Ryan. It's a challenging we're

this Matt and degree. a we So talked to -- about

internal of earlier ] maybe peers. our to operandi have than downgrading modus We X credits of [ an some

triggers we it our triggers management record to. alluded because of part activities with think what it's -- track It's is to a of you triggers part our that And after monitoring. what that involvement a that It higher long-term of integral a level sustaining series whole of we happens process. are do that just teams that of It favorable with sponsors. and level

Category where exceptionally year, the losses the X.X%. the an future it's actually It's X number. That's see we it, I course of but you X.X% X low And in credit over and credits. place The fallen is didn't greatest mention with to gone correlation from will. last

fixed I you've think perspective, rates the at does look in to from coverage credit And interest the coverage, interest got Math irrelevant all levels things we've interest monitoring says this, Anybody So today's picture whole much equal. at charge that credit know who harder and is our than approach they this. math. doesn't reflects were to being make system seen decision-making that in reflects rating XXXX, credit our increase a

Okay. helpful and all that. That's background

I translates question of the other the market, sort that some middle you the on We'll spreads compressing upper some this of maybe more of compressing, maybe market. was mentioned kind if certainly, is core upper a the spreads to more market. some little focused bit, middle see of The terms had middle but borrower-friendly in

to why kind just credit high from looking others it's is capital feel raised, deploy. of occurring? well. from Just consistent that's that's something level, pretty not a lot I'm throughout But referred XXXX is of commonly been, question as there's something that private my as But -- curious been I a and why, and like, from as because

out a there's credit marketplace looking additional now guys supply, potentially, that in flow increases to for to that and starting the now on where pretty there. of coming it deal it's see big we become deal But some activity, seems

the And are market a a that seems little maybe issue. there's coming side. for so activity, it credit. more an more It becoming more seems seems of supply that favor better actually lender that -- in borrower-friendly, bit that flow that, it But looking the counterintuitive like actually seems bit would the the and which and people work actually seems it to of that balance like that's increase now little demand would deal in

So explain just what I'd you and love to you're hear why. seeing

you answer that. have don't I an on for

like And to we're and your not supply have in why. explanation you're a do I function correct I'm be think what of better sure tend on seeing. demand. of Dynamics than I the a you description this

for get the we'll better course months. those sense the coming a think over I of So dynamics

may I wouldn't ]. get a standpoint, think [ it worse spread stop from

Okay. kind a activity talked order had -- pickup in And a last now and then the into maybe seeing others year-end sense just into you're just bit a talking stabilize get little shoots of the that was order of little fruition, of right in potentially deal come you and rebound I do bigger and maybe question XXXX. of market about activity. green . In you cross activity that bit the about just for the have a a pickup around to and for actually in same line to here? and curious, finish activity the to I'm conditions have that sort stay

deals do just big around sort from levels of to a a in stabilize an there growing these line Or continue do crossing sort does rate, we if kind you'll much right standpoint, in anything of see Or think have a to think you XXXX? you finish cut base economy? in the change like economic stronger of uptick

reduce I would help. think uncertainty the things that

example, got, economy of be of would continuing is is underway, that that would to the two we inflation helpful. that data grow, the grind in get to are wars internationally, way respect helpful. be if lower, that that news more suggesting by some So If continuing good we

obstacle right a uncertainty to biggest rebound and out in significant level there. the sustained a think now significant seeing is deal of activity the I rebound,

recalibrating in by time the had swoons since we've equity [ credit I sudden ] 'XX rates bit when go think June And of environment in took a I There's in uncertainty of both both a narrowing. think of fair reduction has still, Having sellers. valuation helped help in think buyers I that, in and a higher further that's continued part many gap that And lot and markets. slowdown gap, but the cases, M&A and said a in on think context expectations the the I would narrowed.

Understood. today. me time. I for appreciate the Okay. all That's

for Golub will at this call no time. remarks. back David further are Mr. closing I There the turn questions to

today. to look questions please Well, you us free bit thank great next We this talking interim, in call as hope you quarter. any of time you all the Thanksgiving, a have everybody. helpful. found your to always, feel if out. giving you a reach Have forward for I And to

for conference This concludes thank We you call. joining. today's

You now your may lines. disconnect