Jonathan Cohen: Joe?
Joe Kupka: Yes, I think it’s very quick moving. As you said, manager tiering is especially top of mind for us. We’ve seen that basis grow and shrink throughout the year. It’s pretty wide at the moment, so that’s a potential avenue for some relative value. In terms of primary and secondary, that’s moved around a bit, probably not to the extent of the manager tiering, but selectively, we’ve participated in the primary in a few instances this year, but the bulk of it has been in the secondary, just given that’s where we see the relative value. But, yes, I think, like you said, there’s a lot of opportunities just given the large bases between managers, between lengths and between primary and secondary.
Matthew Howlett: Yes, you seem like you guys are finding a lot of value. The yields all went up on the GAAP yield and the core yield on the equity and the debt. Is that from the new purchases that you’re finding deeper value, or is that just from improvement in existing holdings? Just curious on that upward movement in yields we’d like to see that.
Joe Kupka: Yes, it’s a combination of both.
Jonathan Cohen: It’s a bit of both, Matt. So obviously, when we’re turning the portfolio, by definition, we’re seeking better total returns, better risk-adjusted returns than the positions we held historically. But this was a strong quarter. We saw a meaningful improvement in NAV, certainly, driven by strength in the underlying collateral pool. So very much so.
Matthew Howlett: Great. Look, it shows the benefits of active management, and congratulations to everyone on the team on that. And then I guess the final question is, like, the balance sheet is just in terrific shape. You haven’t really issued any new preferred or unsecured notes in some time. I know there’s one small maturity in mid-next year, but with the growth in the equity base, the improvement in the NAV, can you just give us an update on those markets and when potentially you’d look to tap them? I mean, we’ve seen that market open up to some other people. Just curious, is your equity base, your common equity base, grows? How willing would you be to be able to tap those markets? It seems to be very critical to shareholders.
Jonathan Cohen: Sure, Matt, absolutely. We’re always open to that possibility, but at a price. So we need to be very mindful of the differentials between our uses of proceeds and our costs of capital. And the five-year, for example, $25 par market that you just referenced is certainly a wider market than it was a year or two ago. And so we’re watching those markets. We’re sort of always in internal discussion about the viability and desirability of issuing more debt, but as you say, we haven’t chosen to in a while.
Matthew Howlett: Absolutely. And it’s nice that you guys are paying attention to price. It’s just that the balance sheet continues to improve and improve. It just seems like even with these putting on some higher yields, it could be enormously accretive if you put on something in the 8% range, call it, and go into market and buy a sale equity yielding high T’s or whatever. It just seems so that the math would make a lot of sense at some point when you’re ready to explore.
Jonathan Cohen: Absolutely, Matt. It’s a dynamic we’re very much focused on, certainly.
Matthew Howlett: Great. Well, congrats on a great quarter. That’s all I have.
Jonathan Cohen: Thank you, Matt, very much.
Operator: We have a follow-up question from Mickey Schleien from Luddenburg. Please go ahead.
