Blackstone Secured Lending Fund (BXSL) 12 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the Blackstone Secured Lending Third Quarter 2024 Investor Call. Today's conference is being recorded. [Operator Instructions]

At this time, I'd like to turn the conference over to Stacy Wang, Head of Stakeholder Relations. Please go ahead.

Katie. you, Thank welcome conference and Secured Fund Lending Good to quarter call. third morning, Blackstone

today Co-Chief Teddy Joining Bock, Brad of are me Marshall, team. Officer; Officer; other Whitaker, the Financial management Co-Chief Executive Carlos President; Chief and Desloge, and members Executive Jonathan Officer;

we press website the on this results of slide our our release Shareholders presentation available morning, Earlier filed which our are and of www.bxsl.com. and XX-Q, issued a both of section

throughout will be referring call. We presentation today's that to

that today's are duty you We may include of I'd firm's which remind like undertake may to results. call forward-looking statements, statements. from uncertain the any to these do not actual outside and update differ control and materially

of of on that For the our please could recent risks see annual Form results, report Factors XX-K. some affect most section the Risk

copyright is turn that, With of material outcome may to Marshall. Blackstone I'll with duplicated not Brad cast audio This be set. the over call and

morning, Stacy, our you, joining and good everyone. Thanks for Thank morning. this call

into Carlos related to dive with thoughts quarter results. we John, third high-level I'd and like begin some our details Before to with Teddy,

results power another of Blackstone continued active These factors differentiating quarter platform, private space. results performance. in of solid credit of the value investment with net scale reported BXSL net credit deployment, growth and reflect quarter-over-quarter the many strong and income, increased the strong significant in asset one the we have

largest and platform, fund. being private business, the the credit the head allocator to third-party largest commercial discretionary to world's the equity In owner real largest largest addition private Blackstone is of world's estate

and investment unit us platform our benefit firm our of decisions, into business which has largest we allowed timely a ultimately disciplined us credit The helping interconnectivity Blackstone, make further grow have a as shareholders. to

results. our to turn Let's

share per share the return a in from Our prior per $X.XX on equity NII annualized quarter. and is up of XX.X% $X.XX represents

per value share quarter. by $XX.XX share Further, $X.XX to and net asset increased last $XX.XX per

yield, annualized in portfolio represents highest one peers XXX% as secured Our their is senior share well at traded lien covered at BXSL BDC XX.X% dividend of with an invested among $X.[ our first XX dividend and with of of assets, XX.X%. ] per much the

Return strong. drivers also remained

end, cost. on has on with yield average investments at investments nonaccrual X.X% As an XX.X% BXSL of performing of quarter weighted debt

The third BDC the BAAX the to upgraded September, industry for credit marked BXSL. BAAX Blackstone both our X another that from first ratings also distinction. manager quarter both nontraded only BDCs with Moody's and for with BXSL and the BDC making In

believe down with in along lower us investing may our further drive focus cost on ratings, what to are These we investing help assets the higher-quality in capital and discipline BXSL. of

up new ended ramp commitments fourth consecutive committed and to quarter and since highest continue funded $X.X We and quarter We $X our commitments billion with quarter billion in fundings, in marking both million fundings our XXXX. origination of over $XXX for in our of the investments.

Last quarter, broad rates our short-term and were prospect projected coverage deal we as fall. the discussed model flow for to increased

BXCI over control number deal We BXSI's of was position pickup the in have this sole Further, BXCI our year, QX documentation. Since as quarter, XX% well. increase of we pipeline lead a seen in over in deals investment an our have seen of a putting in structures pipeline. or lender us to deals in and Xx last

to for allows of the larger grow. to looking that scale businesses X us are relevant BXCI be full range midsized

optimism Looking soft for environment, at macro the continued landing. broad we have

forward annualized the is at May, until level view cuts throughout claims market. economic strong we Fed has expansion current momentum claims growth off. of leveling to initial repeated saw as other from with and labor be since current appear support at felt weakening, growth a least market the in rate in the there and also the X.X% jobless carry pause believe QX came week, we what the The lowest we GDP jobless to

prices be dry For supportive that we is repayments, believe believe for high, clearing activity means private from both standpoint. moved we Economic private equity XXXX and in lot which growth is higher. a sufficient, deal And for may as credit, should a positive activity, look powder the XXXX like this which expect to be deployment a such, our we pickup investors. M&A market

will my With pass that, I colleague, over Jonathan. to

new range Thank $XX.X with over value, from Ending borrowers you, X.XXx. We of to target were average quarter flat billion to X. and middle adding and and let's leverage quarter X in in increase of billion compared at at our Brad, the QX, the turn X% the fair companies. to portfolio now the to leverage that's totaling both ended Slide a prior while of XXX $XX investments XX our relatively X.XXx

billion, our strong our $X.X lean capacity at comprised liquidity across maintained that to cash borrowing available expanded including position revolving ABLs of credit and into facilities, pipeline. We

investment on investments quarter on Our this the fundings sold during repaid And assets was XX.X% XX.X% XX.X% XX%, compared quarter. weighted fair and average quarter value yield debt respectively. the yield performing debt and averaged at and last new to

structures Now let's portfolio of are significant of at jump lien XX.X%. value loans the owned by generally companies investments in Approximately by loans Slide loan-to-value sponsors, X. are of average BXSL look equity senior XX% who and financial those take first these secured demonstrated have a the in to and an capital XX%

year. International that $XXX is at million, Lincoln roughly Our has from X% strong the Xx we companies is EBITDA private of portfolio last market database. LTM increase believe in larger base This also averaging a what than

portfolio lower line and bedrock to see an smaller seen over market of defaults. margin EBITDA XX% private broader by Lincoln the higher have with the or on larger relative portfolio strength from And to EBITDA we the continued BXSL's rates growth credit terms more companies, measured and our database counterparts in in companies of performance as profitability basis. growth LTM higher and

matters, to it's performance, portfolio consistency. Now only not that when speaking strength but

importantly, we portfolio ago years to we launch performance with believe Most nearly company people. to process we've volumes commitment talent foundation consistency laid of fund's both demonstrated of our speak the investment a Our and X selection our BXSL. the the and the of

a relentless quarter. focus posture of defensive that in to on compared at lien lower is secured traded investors. evidenced view X.X% rate cost Our This of of industries average our X.X% from we for BDC debt nonaccrual last first rate by our as is default low senior peers further what

Now average in compares companies private we was Lincoln the continue which QX. of in The XX emphasize the LTM database importance months based to the interest coverage for to for average coverage. portfolio the our last quarter, coverage credit at X.Xx the X.Xx on third again favorably market EBITDA BXSL broader LTM EBITDA over

revenue Xx of fair X% at versus is XX%. recurring coverage, share market Now at the the loans, of the BXSL Xx portfolio looking private private nearly credit value at Lincoln greater below excluding being

focuses Slide portfolio, Now looking how we now to on grow exposure. industry our continue at the X

And LTV debt portfolio our XX% meaning earlier, discipline investments those focus quarter were I significant companies, while positioning. As and the there's during defensive new of new an third on mentioned of companies first BXCL amount private quarter, number junior the a maintaining of in investment the of lien portfolio loans. approximately the with beneath at secured, on XXX average increased XX% in senior capital

with conclude amendment recent on activity. some I'll and And our documents points

especially document especially loans market protections. index documents. the relative agreements, we the in lack their significant control And reminder, lender kind have XX protections been now our past focused over long-term remain our when to including these months these recovery averages, lender highly liquid rates depressed of stark on in focus a And most credit important lender, contrast this As where loans on protections. we syndicated a in we as and negotiate when leading is place to

the Now third amendment activity count was XX private down XX% documents quarter. BXSL of amending quarter-over-quarter by in with borrowers

XX% contributions than portfolio amendments believe Now were They fair deleveraging help X% associated And of BXSL amendments of terms. at associated restructurings immaterial the by credit. support market extensions to that or value. new less with add-ons, and matters M&A, sponsor our changes of the position were with representing technical or that XX% the involve we equity these DDTL

I'd turn Carlos. to that, colleague, like With to over my

Jonathan. Thanks,

to per share. of dividend maintained distribution $X.XX Turning X. Slide BXSL its

while shareholders. regular yield share. We continue through deliver Building growing NAV steady to per to dividends also

sponsor and be have with we into as Accordingly, what advantage enhancing more lower expect strength and with point as period we to to platform pipeline existing on us of look heading are while echo view the companies on active deal with models we BXCI's continue by of a approach equity customer have interest borrowers assets. expanding the increased We The to or a in take Brad's transactions to allow advantages of owed of business we activity Blackstone. bases. strong deal that of BXCI private earlier our activity this I believe rates. those the borrowers we focus driven and pickup our M&A with managers newer the as scale sticky portfolio quality

fair new sole lead quarter, us deals new leadership our our on stats the discussing, the but have value lien control. market few focusing third XXX% during maintain first tenants portfolio X were or been in the a to we provided And by on the was some top allowing just already case. of John these for every quarter, of investments lender BXCI and

companies both market more platform after and have new is and BXCI's found alternatives number As the even that public by market remains alike. competitive rising of sought credit with we the sponsors funds,

BXSL's core despite In XXXX, fact, this expansion of drivers muted track The XXXX busiest is of M&A be year environment. been. to on since a deployment have

them the on as through to several process them than used expand system. help standpoint, market equity add view favorite the leading is across capital these creation XX% transact and the Blackstone to grow; with we plugging First, and can an thematic large-cap saving program value in or From today our providers, of alongside to service our offered certainty. desire established high-growth of second, into the areas, by our by continue with we be market capital to try diligence and some believe what capital Blackstone procurement we and by help third, coupled has ecosystem focus is partners; make helping value partnering group middle where our Blackstone to with the BXCI either ability market portfolio simply investment, in more of pockets borrowers and costs deep fields, we our we middle platforms capital experts BXCI's because can create compelling companies our a the once reducing speed value expanding companies neighborhoods.

to it access BaaX. resources. particularly lowest having scale a deployment, results will increased believe believe result, focus BXCI Middle our X BXSL's BDC BDCs these our upgrade on Blackstone's as nonaccrual for our traded of the peers believe deep Moody's the to investors. recent of of platform results demonstrated market driving or whether investors are have private as space. third-party validation and We rate across large may companies caps, our by advantages, unique a all that differentiated credit and Truly these BXSL's passionately these in the benefit be not we enjoy We of

And I turn to with over will Teddy. it that,

Carlos. $X.XX a our $XXX fund or Thanks, for quarter year-over-year, start and income on the driven results investment the third dollar-based million XX% net I'll XX% for interest Total up also the income with share, income. per dollar operating by was since or highest amount XX. year-over-year $XX quarter, BXSL's inception. record was up investment the In million increased Slide

reminder, Interest represented XXX% As in and versus nearly to income, earned total stability quarter. the our upfront, the of loan dividends each income long investment we believe of fees greater leads we PIK, amortized taking term. of over a which OID over these XX% life excluding the

increased $X.X portfolio quarter assets. $X.X NAV. investments our the total from above portfolio, excess primarily across to billion of ended up per NAV of $XX.XX We fundamentals at XX. to share outstanding or billion earnings driven majority the $XX the last $XX.XX and debt Slide issuance share balance and total billion stable on with Turning quarter, of value, of X.X%, net sheet fair nearly by

consecutive This represents eighth per NAV growth. share quarter the of

Moving to XX. Slide

was deployment the and of active and funded $X.X up as XX. year-over-year. with approximately approximately committed estimated basis, earmarked the activity XXXX million the addition, billion $XXX in Net In BXSL by in since Brad outlined, we quarter, XXX% course committing $XXX BXSL additional BXCI for over funding an a investment most quarter on over million, saw to September million as $XXX

forward, in the million rate bringing expect rate look of increase M&A of to quarter, repayments would volumes which X%, to XXXX. environment. we all the repayment with We we in turnover to And compares XX% [indiscernible] portfolio saw for $XXX year-to-date as

Slide attractive Next, drawn includes unsecured and liability that which of XX% outlines and not bonds debt diverse profile, are our swapped. XX

weighted coupon average contributed X.XX%. fixed performing borrowings key which of bonds These a on of to unsecured advantage a average have on weighted an our X%, a we XX.X%. yield investments as value That compares weighted than to rate overall average in our elevated environment less of at an rate interest debt view and fair

upgrade ratings. we a corporate to This full investment-grade earned BaaX. X BaaX mentioned, Brad Moody's we credit our from notch maintained And as quarter, from

X listed on This last portfolio is to was heels stable are and notch BXSL conservative rating, Fitch structure. construction, to BDC Moody's an BaaX of in QX by X from flat. the and first positive receive a of the to being upgrade X improved with by year BBB full to to liability BDCs Blackstone, a managed of a approach by disciplined positioning our testament defensive which outlook

have funded We have maturity no an liabilities average on weighted of and and facilities years. X.X our maturities our XXXX, until overall funding debt

points the SOFR drawn quarter, We plus upsized this our to by lowest points. million by while tightening $XXX basis corporate XX.X revolver XXX.X tier basis spread

to sheet. driving end, continued or a to over X.X-year at X.XX% optimize treasury points bond, capital. costs Post balance priced on rate. which down relevant our our further testament our cost we Another issued focus our million basis to $XXX coupon improve XXX the have financing quarter to seek we platform of a and benchmark

Year-to-date, tightest spread bond BXSL the for spots claims issuances. BDC X top

spread through portion pricing at post issued senior among million tightest SOFR to plus credit XXX SOFR plus the CLO Additionally, the notes market CLO BXSL's notes middle end, value, XX% any at first private including XXX-plus XXX, XXXX. quarter most senior loan $XXX of CLOs since the priced the on

all of cost that financing has pull lowest the in to BXCL just So together, BDC one space. the of

issued have plus priced at first traded of and tighter benefit this BDC peers those Our XXX.X, all our CLO than XXX revolver at our plus our bonds SOFR the to of investors. SOFR our year

September Total the our borrow X in of flat range turns, undrawn second near was $X.X billion was of of XX available quarter about liquidity midpoint and at debt X.XX quarter X.XX. from end cash and and to leverage the to ending target as

ask balance to open positioned have to for pipeline that, with questions. further. continued up it our see we support the capacity fall through With excess as sheet I'll may We year-end significant momentum rates you. Thank operator

Instructions] [Operator

O'Shea We to Securities. Finian go first Fargo with Wells

me. for one Just

facing the your of to market namely built headwinds extent that spread, And Can to with be? debt but the et managing earnings, costs, on spillover So cetera. what that's financing might you you've other to up? touch approach base rates, amount meaningful,

I long-term talk Sure, Fin. spillover to about Teddy and maybe can also point speak kind of then the can the Brad return or

so about little of a ICTI a worth you or over $X.XX of X NAV. today, if So measure X% it's dividends quarters roughly spillover, around share for nearly

and I spillover to think the is away important the item how take earnings trend is book. you view trend start your looks long-term return long-term how on to

your Because what that's have way you capital, to long-term up, is the it and extent the growing performance. what spillover it on But does you're also right, is does retaining and way it magnifies earnings, if great reinvesting the that on it strong great magnifies magnifies down.

issues us, long-term into losses, the et as underwriting in been to and increasing some growing. you to nonaccruals, strong, be leverage run have that dividend profile in capital can return that may strong of attractive, you that as cetera, part clearly because returns that and find longer-term start very actively So suboptimal extent for you well has maintaining for investors outlook that the well of

So I'd spillover, that's the say number.

forward market Our Brad to then you look. is on generate spillover it attractive my keep so pass focus on long always as And I'll that return. colleague, adequate you ensuring

Yes. in.

volume activity. I down was come So because paints very deal some last and But that over Obviously, highs of spreads, high the sentiment of past are with rates that high spreads think I the low from there couple and full your year's yields deal necessarily don't agree with rates down a tightened coming have sessions. picture. have

I morning years the think was article a was that XXXX Stanley there said a basis. this lowest M&A that in Morgan adjusted XX XXXX, on GDP

the what generation. will deal good and lower accelerate good That's rates for spreads for So fee turnover. lower do That's environment. is

So we're on positioning and actually positive quite accordingly. outlook the ourselves

will from it. obviously be and portfolio do So help think XXXX Lower as a for sides I just X -- to there's think well. that. of volume, to will obviously investors cycle kind benefit super rates I companies deal something will the

Casey Compass We'll go next to Point. Alexander with

Brad, environment a to level for to per normalized accelerated in income. what term range volume today's cents earnings, to your share of much add a and a know of that I'm I'd with there could the today's volume? M&A churn that Relative portfolio. where I fees getting you're in is permission. going super in earnings cycle appropriate to an M&A love steal in to those mean, normalized M&A how more leverage just

So granted. permission

luck good So that. with

that right would earnings the things say active of drive of Clearly, leverage. M&A So of from things couple more we're mid-range will what a I that -- in kind of our couple a now, market.

take little So environment. a we have leverage deal bit up the higher ability active to more a in

of If the least you kind we Blackstone, at the the deals, over think fees loan. amortize with about of life

So if quicker. little bit those loans turn over a

the acceleration an addition materializes. those have call You in of fact fees you some that may protection have that to

Casey, exact sure on think back and average the doing XX%, not some in the can and from turnover but think X you I XX% there. we'll start probably math as into about I'm put an points own it. being portfolio fee So figure to you numbers about your

since right. I'll think to with do said you good is I'll it I All on quote luck stealing that, as what And opposed it. you

Secondly, in...

Casey. it, The partnership, I appreciate

Okay.

a little Given doesn't operate of relative something -- did X Why high-quality this great desire rating. X.XXx? to -- naturally platform why credit the your leverage that. obvious actually I a understand portfolio, have than and nature and ratio that's to higher But a the mention you just to at

of benefits Well, that. you're bit, rating care our about the do a we and seeing quite

Teddy issued year. the were If of year-to-date, tightest the at CLO, tightest look the bonds you those mentioned, the the bonds,

the tighter than everyone revolver Our else is market. in

gives and the like Moody's. to, material credit upgrades from that no are the we because things we one get just drivers those assets, it's it's of return because of enough quality of all So that of got one

a and risk investors, driver, how to it manage not which, maximize in listen, Casey, our towards extra portfolio for into points long-term order to XX the XX is it of return credit, our basis goes profile lower So spread. or a calculus on our it's about returns in

really #X lost that's is loss, us. people. for some that It's and think priority I minimizing about

in it see You results. the

of is So But our we're our very liabilities I'm and different rating on focused part case. glad the all and these big that's a drivers that.

We'll go Raymond James. next Robert Dodd to with

to this seems And for heard quarter. the be we've say Brad, the to the optimistic the of any congrats on I've since on for quarter for you maybe into probably fourth XXXX. got 'XX, heading most -- activity outlook

time I think of ever first kind outlook XXXX to you've compared level. activity the The

you So there's last hey, what lot is several we've gives going powder. year level the a for it confidence? that of next elevated be heard I to of mean, great. dry years,

are All the you of now, at confidence true of [ much things those going to that's They last ] true more were now. happen year. but beginning see

pushes So what's the real level of tipping point into you that optimism? that

look Well, lowered has and start much what's both year. of year on the at spreads, changed, the was change cost which of primary rates you the it so better Great. the is the outlook course the at over economy this been has the capital. than if And of

different from year. of So maybe both those things what's the this are start

to equity dry they that, have we LPs. in which In return to powder There you their turnover highlighted capital own a addition drivers kind need be of is to lot might of same sponsors, private there's have the to with has portfolios. that before, their

true is start true year. was the that the It also of While today. at

the clear is a you what's economy. really So more changed on outlook have

more buyers and deal administration an you of make have supportive transactable for now both come that's have capital sellers. will to down and quite be of cost You valuations that activity then

myself are and put had reasons that bankers, next cycle. together overlay quite think maybe to that every of will conversation be be talking of super And more would year a will XXXX I but talking we all why particular, busy. road have we're our just anecdotal, it's the to view on out sponsors, top one So the confirm that, on in

So positive. point all signs seem to quite

of overunder spreads. to et wording active forward not year then And tight are stabilize? cetera, they're And or mean, losses just whether now. more point, spreads but And higher what's about right? looking to I your more presuming time a next are are market. right just it. pretty seeing I fee lower Got important, and spreads, them your activity on mean, this you It's

Yes.

of I don't So argument, I'll tight. the spreads necessarily extraordinarily that are other take side think Robert.

In they're they line fact, in were in XXXX. with where

were about XXXX. very, I think in people very the think spread which spreads wide movement,

markets, their and credit the for peaks, so come off of in which And market, spreads variety seen you've XXXX private too market both down high-yield high were reasons. market, arguably the in loan the in public in a

say, than more risk because spreads in is So actually they more in just a historical I is I however, bit were would think are of per line capital expensive. levels. lower spreads with that little XXXX. better Leverage unit are

actually And healthy. so as quite we view this environment

our I return And which get for over private tightened private than and attractive investors very markets, public the markets, to job again, relative can is the continues markets. a to what to more have public a premium have deliver the credit premium would in they say

Instructions] [Operator

We'll Kenneth Lee RBC go next Capital Markets. with to

loosening and -- you're of on that any in originations seeing, terms of such any documentation seeing color terms you've recent the items? Just the commitments some of been trends the the

to that. take Yes, I'm happy

about been deployment of We activity, fairly XX% M&A our had we've we funding environment, what's XX% XX% most quarter was leave despite strong stats few our little a I to right, about would where a from You're sluggish common you. we call seen sold of active A or had were out perspective. bit a key opportunity. in a to

leaning So into only to been really exporter activity. our private our not generate exposure but public we've also

on average of parts economics, of that the perspective leaning activity relatively question, recoveries And XXX seeing the we've the at in was $XXX across dispersion really X.X from document with new committed In half in that spread below million of half We is around our $XXX OID, sort documentation right EBITDA, average about What market. of been we split is context XX%. key in of see market. XXX terms to public of LTV into upfront that deals million. your a had specifically we're the closed where above successful deals points

So collateral add-backs. add-backs collateral EBITDA EBITDA that's or that's coverage, and protections

protections seeing through our the XXX% leading our play documents And public recoveries. at so nearly where around portfolio, items. as the weakness those of we That's to market really look you're have lower

And Ken, add. would maybe I just

I what think a the fourth little the from spreads quarter feel reflecting wider quarter in spreads because bit saw than summer, a summer quarter widened will saw it through here. we deals out we like get does that the third saw little at third their so they've was is bit when you tightest,

reverse Got you you. -- about obviously, may. deal Very you could just from wanted if that the favorable how outlook follow-up, seeing Last I contribution helpful a addition quarters, going from And of one terms to in forward? outlook any few see just see some in there's more there. and benefit update talked if much originations to,

Yes.

opportunities led incumbency. of speaking XX% reverse year. pipeline we've to we've of that's had we meaningful baked of XX% the That you're sort pretty the has side. where where our Ken, what public have a It's think, where into into sort continued. of Again, been is opportunities to I So on reversing effort a activity deployment to this exposure

firm, of we given that's companies. an benefit the invested So as platform or X,XXX cover of ongoing ours, over a are in effort a

next our from take with We'll KBW. question Johnson Paul

-- borrower upmarket upper middle looking that kind skewing still terms I you of you of within investment company portfolio funding $XXX see year, of middle EBITDA, borrower? where of that more In kind the mean, at do closer to for potentially Are average size? terms of of market of kind the target kind market for are looking more grade next you deals? optimism in million towards further Or activity the the

Paul. Thanks, Yes.

of So small this when lot active just in what's I part because more the we or great larger we're market. let say were would the the tighten, go the the about passed midsized deals, see middle deals. our of deals, levels more the risk of market, larger large so documentation platforms, actually reaching of spreads we we Typically, full on -- start for a and year, deals, that like and people deals. active less we some do range didn't bit deals the a we leverage in

do larger I better. sponsors, will the companies. better think better we more because they're towards they're bias better management We have larger businesses. say a diversified, teams, they're

market So presents broadly. attractive itself more that, more being to that as the extent

that evaluate into upmarket part the lean those of structured Again, sense larger the skew to middle the market are market. this we we more of little further market appropriately. it compare a year, continue deals. next deals the if will and We year bit My will may we rest skewed we the to as up. volume if is picks

from with We'll Truist take Mark our Securities. next question Hughes

future trajectory the been had of Any on On third down thoughts there? small, but PIK in sequentially earlier income, up the pretty moving kind in quarters, was it bit quarter. a little

Mark. Thanks, Yes.

right. You're

about last full and We had off that issuer the lower roll So take was in was of one cash September. paying income X% quarter. represented versus actually

top So that's X is our PIK really you Over of see. impact the XX% the really from assets.

is of less marked gross associated performing above income of All then X% PIK XX XX. with assets those below marked and are our than

limited less months, allowing earnings earning option. to where speaking, in it that been Generally needs and tool I But the markets. is versus premium our PIK for generally good little bit that public better has to think, is a structuring seeing speaking, with differentiate than quality view a growth. where of XX to optionality that. line a you're we're you're It's really up way

do generate opportunity income repayments. your fee we more then And if good. Very to get

the protection, talked call You about accelerated around fees amortization.

super your would we Given income you the the relative have compare we it's might seen a is composition that past, of the been there do get difference? material portfolio in any books, on now age, just how potential time or the levels fee the if to in cycle

Yes.

are [ amortized XX% in anywhere Our of put above our the of right? just that cost portfolio you in we would and some to from XX.X repayments apply XX% -- the can so ] X%. to just range, that, rate with to it, our sort numbers is repayment expect sort normalized a Year-to-date,

I So little next detail how of could year. income bit that gives generation trend piece think that a on

I'm from We'll question with Wedel next final take we'll question take JPMorgan. -- sorry, Melissa our our Melissa from

already thought aftermarket up I'd This for the and follow capital actually particularly there. productive were Most raising on seems quarter answered. asked program. be I a to

higher bullishness potential if sort going do the run in Or of a -- being market, as the turnover you anticipate about you we similar deployment Given bit program? coming in forward on the after just expect think portfolio. of rate environment, little should your upcoming a in that market the the

right? say to is will This trying environment, heavy hard what run of see rate we're on while is first really the you think Melissa. always leverage. do of time, based as book So we We recognizing be as in right higher side want possible. I'd what less deal optimism and to return do levered on our to so around we coming an a it's a that middle we it's John. the Thanks, attractive the deal best check that are deliver always and range

come look invest recognize as levered the you we some issue recognize ability find that we but can the when that also that And then deals there's you that to is return, once important. ability to at that expect then having

cycle come, we're work. much it -- to we that to less put year's last a more or it's it's capital know build of super going be recognizing on us So to to I'd quarter, Brad that same and say as will and for all is anticipating, what quarter the as trying this last important outlined, kind we say, based

turn questions any the back no queue. with additional or additional in over like call Wang to And Ms. to closing for remarks. I'd

call great our of joining Have day. this for a everybody, rest your you, Thank quarter.

today's conclude your appreciate will participation. We That call.