Oxford Lane Capital Corp (OXLC) 2023 Q4 法說會逐字稿

Good morning or good afternoon, and welcome to today's Oxford Lane Capital Corp. Fiscal Quarter Conference Call. My name is Adam, and I will be your operator for today. (Operator Instructions) I will now hand the floor over to CEO, Jonathan Cohen, to begin. So Jonathan, please go ahead when you are ready.

早上好或下午好，歡迎來到今天的 Oxford Lane Capital Corp. 財政季度電話會議。我叫亞當，今天我將擔任您的接線員。 （操作員說明）我現在將發言權交給首席執行官喬納森科恩開始。喬納森，準備好後請繼續。

Thanks very much. Good morning, everyone. Welcome to the Oxford Lane Capital Corp. Fourth Fiscal Quarter 2023 Earnings Conference Call. I'm joined today by Saul Rosenthal, our President; Bruce Rubin, our Chief Financial Officer; and Joe Kupka, our Managing Director. Bruce, could you please open our call with a disclosure regarding forward-looking statements?

非常感謝。大家，早安。歡迎來到 Oxford Lane Capital Corp. 2023 財年第四季度收益電話會議。今天，我們的總裁索爾·羅森塔爾 (Saul Rosenthal) 加入了我的行列； Bruce Rubin，我們的首席財務官；和我們的董事總經理 Joe Kupka。布魯斯，您能否通過披露有關前瞻性陳述的信息來打開我們的電話會議？

Sure, Jonathan. Today's conference call is being recorded. The replay of the call will be available for 30 days. Replay information is included in our press release that was issued earlier this morning. Please note that this call is the property of Oxford Lane Capital Corp. Any unauthorized rebroadcast of this call in any form is strictly prohibited. At this point, please direct your attention to the customary disclosure in this morning's press release regarding forward-looking information. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, future events and financial performance.

當然，喬納森。今天的電話會議正在錄製中。通話重播將保留 30 天。重播信息包含在我們今天上午早些時候發布的新聞稿中。請注意，此電話會議是 Oxford Lane Capital Corp. 的財產。嚴禁以任何形式未經授權轉播此電話會議。此時，請注意今天上午新聞稿中有關前瞻性信息的慣例披露。今天的電話會議包括前瞻性陳述和預測，反映了公司目前對未來事件和財務業績等方面的看法。

We ask all refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those indicated in these projections. We do not undertake to update our forward-looking statements unless required to do so by law. During this call, we will use terms to (inaudible) in the earnings release and also refer to non-GAAP measures. For definitions and reconciliations to GAAP, please refer to our earnings release posted on our website at www.oxfordlanecapital.com. With that, I'll turn the presentation back to Jonathan.

我們要求所有人參考我們最近向美國證券交易委員會提交的文件，了解可能導致實際結果與這些預測中顯示的結果存在重大差異的重要因素。除非法律要求，否則我們不承諾更新我們的前瞻性陳述。在此次電話會議中，我們將在收益發布中使用術語（聽不清），並提及非 GAAP 措施。有關 GAAP 的定義和調節，請參閱我們在網站 www.oxfordlanecapital.com 上發布的收益發布。有了這個，我將把演示文稿轉回 Jonathan。

Thanks very much, Bruce. On March 31, 2023, our net asset value per share stood at $4.61 compared to a net asset value per share of $4.63 as of December 31, 2022. For the quarter ended March, we recorded GAAP total investment income of approximately $66.5 million, representing a decrease of approximately $1.2 million from the prior quarter. The quarter's GAAP total investment income from our portfolio consisted of approximately $62.8 million from our CLO equity and CLO warehouse investments and approximately $3.6 million from our CLO debt investments and from other income. Oxford Lane recorded GAAP net investment income of approximately $37.4 million or $0.22 per share for the quarter ended March, compared to approximately $41.4 million or $0.26 per share for the quarter ended December.

非常感謝，布魯斯。 2023 年 3 月 31 日，我們的每股資產淨值為 4.61 美元，而截至 2022 年 12 月 31 日的每股資產淨值為 4.63 美元。截至 3 月的季度，我們錄得的 GAAP 總投資收益約為 6650 萬美元，相當於比上一季度減少約 120 萬美元。本季度我們投資組合的 GAAP 總投資收入包括來自我們的 CLO 股權和 CLO 倉庫投資的約 6280 萬美元，以及來自我們的 CLO 債務投資和其他收入的約 360 萬美元。 Oxford Lane 在截至 3 月的季度錄得 GAAP 淨投資收益約為 3740 萬美元或每股 0.22 美元，而截至 12 月的季度約為 4140 萬美元或每股 0.26 美元。

Our core net investment income was approximately $37.5 million or $0.22 per share for the quarter ended March compared with approximately $50.1 million or $0.31 per share for the quarter ended December 31. For the March quarter, we recorded net realized losses of approximately $4.9 million in net unrealized depreciation on investments of approximately $3.5 million or $0.05 per share in total. We had a net increase in net assets resulting from operations of approximately $29 million or $0.17 per share for the fourth fiscal quarter. As of March 31, the following metrics applied.

截至 3 月的季度，我們的核心淨投資收益約為 3750 萬美元或每股 0.22 美元，而截至 12 月 31 日的季度約為 5010 萬美元或每股 0.31 美元。對於 3 月季度，我們錄得的淨實現虧損約為 490 萬美元投資的未實現折舊總額約為 350 萬美元或每股 0.05 美元。第四財季，我們的運營淨資產淨增加約 2900 萬美元或每股 0.17 美元。截至 3 月 31 日，以下指標適用。

We note that none of these metrics represented a total return to shareholders. The weighted average yield of our CLO debt investments at current cost was 18%, up from 16.6% as of December 31. The weighted average effective yield of our CLO equity investments at current cost was 15.8%, up from 15.7% as of December 31. The weighted average cash distribution yield of our CLO equity investments at current cost was 16.5%, down from 18.6% as of December. We note that the cash distribution yields calculated on our CLO equity investments are based on the cash distributions we received or which we were entitled to receive at each respective period end.

我們注意到，這些指標都不代表股東的總回報。按當前成本計算的 CLO 債務投資的加權平均收益率為 18%，高於截至 12 月 31 日的 16.6%。按當前成本計算的 CLO 股權投資的加權平均有效收益率為 15.8%，高於截至 12 月 31 日的 15.7% . 按當前成本計算，我們 CLO 股權投資的加權平均現金分配收益率為 16.5%，低於去年 12 月的 18.6%。我們注意到，根據我們的 CLO 股權投資計算的現金分配收益率是基於我們在每個相應的期末收到或我們有權收到的現金分配。

During the quarter ended March, we issued a total of approximately 3.9 million shares of our common stock pursuant to an aftermarket offering, resulting in net proceeds of approximately $22.6 million. During the quarter ended March, we made additional CLO investments of approximately $117.4 million. And we received approximately $24.8 million from sales and from repayments. On May 10, our Board of Directors declared monthly common stock distributions of $0.08 per share for each of the months ending July, August and September 2023. And with that, I'll turn the call over to Joe Kupka.

在截至 3 月的季度中，我們根據售後市場發行共發行了約 390 萬股普通股，所得款項淨額約為 2260 萬美元。在截至 3 月的季度中，我們追加了約 1.174 億美元的 CLO 投資。我們從銷售和還款中收到了大約 2480 萬美元。 5 月 10 日，我們的董事會宣佈在 2023 年 7 月、8 月和 2023 年 9 月結束的每個月每月分配每股 0.08 美元的普通股。因此，我將把電話轉給 Joe Kupka。

Thank you, Jonathan. During the quarter ended March 31, 2023, U.S. loan market performance improved versus the prior quarter. U.S. loan prices, as defined by the Morningstar LSTA U.S. Leveraged Loan Index increased from (inaudible) of par as of December 31 to [94.71%] of par as of February 9 before dropping to [93.38%] of par as of March 31. According to LCD, during the quarter, there was some pricing dispersion related to credit quality with BB-rated loan prices increasing 17 basis points, B-rated loan prices increasing 165 basis points and CCC-rated loan prices increasing 270 basis points on average.

謝謝你，喬納森。在截至 2023 年 3 月 31 日的季度中，美國貸款市場表現較上一季度有所改善。根據晨星 LSTA 美國槓桿貸款指數的定義，美國貸款價格從 12 月 31 日的面值（聽不清）增加到 2 月 9 日的面值 [94.71%]，然後降至 3 月 31 日的面值 [93.38%]。據 LCD 稱，本季度，與信用質量相關的定價存在一些差異，BB 級貸款價格平均上漲 17 個基點，B 級貸款價格平均上漲 165 個基點，CCC 級貸款價格平均上漲 270 個基點。

The 12-month trailing default rate for the loan index increased to [1.35%] by principal amount at the end of the quarter from [0.72%] at the end of December 2022. Additionally, the distress ratio, defined as the percentage of loans with a price below 80% of par, ended the quarter at 6.3% compared to approximately 7.4% at the end of December 2022. The increase in U.S. loan prices led to an approximate 10% increase in median U.S. CLO equity net asset values. [Median junior] (inaudible) [cushions] declined 0.2% to approximately 4.5%. Additionally, we observed loan pools within CLO portfolios, modestly increased our weighted average spreads to 357 basis points compared to 354 basis points last quarter.

貸款指數的 12 個月追踪違約率從 2022 年 12 月末的 [0.72%] 增加到本季度末按本金金額計算的 [1.35%]。此外，困境比率定義為貸款的百分比價格低於面值的 80%，本季度結束時為 6.3%，而 2022 年 12 月底約為 7.4%。美國貸款價格的上漲導緻美國 CLO 股權淨資產價值中值增加約 10%。 [初級中位數]（聽不清）[墊子]下降 0.2% 至約 4.5%。此外，我們觀察到 CLO 投資組合中的貸款池，將我們的加權平均利差從上一季度的 354 個基點小幅增加至 357 個基點。

Oxford Lane continues to be active in the secondary market during the quarter. While most of our activity took place in the secondary market, we added 2 new issue CLO equity investments and 1 new issue flow debt investment during the quarter. Our investment strategy during the quarter was to engage in relative value trading and to lengthen the weighted average reinvestment period of Oxford Lane's CLO equity portfolio. In the current market environment, we intend to continue to utilize an opportunistic and unconstrained CLO investment strategy across U.S. CLO equity, debt and warehouses as we look to maximize our long-term total return. And as a permanent capital vehicle, we have historically been able to take a longer-term view towards our investment strategy. With that, I'll turn the call back over to Jonathan.

Oxford Lane 在本季度繼續活躍於二級市場。雖然我們的大部分活動發生在二級市場，但我們在本季度增加了 2 項新發行的 CLO 股權投資和 1 項新發行的流動債務投資。我們在本季度的投資策略是進行相對價值交易，並延長 Oxford Lane 的 CLO 股票投資組合的加權平均再投資期。在當前的市場環境下，我們打算繼續在美國 CLO 股票、債務和倉庫中採用機會主義和不受約束的 CLO 投資策略，因為我們希望最大化我們的長期總回報。作為一個永久性的資本工具，我們歷來能夠對我們的投資戰略採取更長遠的眼光。有了這個，我會把電話轉回給喬納森。

Thanks, Joe. We note that additional information at our Oxford Lane's fourth quarter performance has been uploaded to our website at www.oxfordlanecapital.com. And with that, we're happy, operator, to open the call for any questions.

謝謝，喬。我們注意到，有關 Oxford Lane 第四季度業績的更多信息已上傳至我們的網站 www.oxfordlanecapital.com。有了這個，我們很高興，操作員，打開任何問題的電話。

(Operator Instructions) Our first question today comes from Mickey Schleien from Ladenburg.

（操作員說明）我們今天的第一個問題來自拉登堡的 Mickey Schleien。

A few questions this morning. Jonathan, I wanted to start by asking you how the problems at the regional banks that we've seen in the last few months impacted overall demand for CLO debt and its pricing as well.

今天早上有幾個問題。喬納森，我想首先問你，我們在過去幾個月看到的區域銀行的問題如何影響對 CLO 債務的整體需求及其定價。

If it's had an impact, Mickey, we haven't seen it. I'm not sure what correlations there might exist between the situation at U.S. regional banks and the CLO market. Broadly, I'm sure there are some interrelations but none have been evident to us.

如果它有影響，米奇，我們還沒有看到它。我不確定美國地區銀行的情況與 CLO 市場之間可能存在什麼相關性。從廣義上講，我確信存在一些相互關係，但對我們來說沒有一個是顯而易見的。

Okay. That's good to hear. And it looks like about 1/3 of your CLO equity investment portfolio is beyond its reinvestment period. And with liabilities generally we're seeing spreads that are still quite wide, the refinancing and reset opportunity is difficult. So how do you see your CLO equity portfolio's yields on cash develop as these investments unwind?

好的。聽起來還不錯。看起來您的 CLO 股權投資組合中約有 1/3 超出了再投資期。總體而言，我們看到的負債利差仍然相當大，再融資和重置機會很困難。那麼，隨著這些投資的平倉，您如何看待您的 CLO 股票投資組合的現金收益率？

Sure, Mickey. So yes, that's definitely a challenge with wider liability prices and limited refinery set optionality. The one positive I would note is just the ability for these managers to extend and reinvest even after the reinvestment period. So we continue to see low prepayment rates, strong reinvestment. So that's definitely an offset to the current environment. So we continue to see strong cash on cash returns and attractive profiles even with post-reinvestment deals.

當然，米奇。所以是的，這絕對是一個挑戰，因為責任價格更廣，煉油廠的可選性有限。我要指出的一個積極因素是，即使在再投資期之後，這些經理人也有能力延長和再投資。因此，我們繼續看到低預付率、強勁的再投資。所以這絕對是對當前環境的抵消。因此，我們繼續看到強勁的現金回報和有吸引力的形象，即使是再投資後的交易也是如此。

But very much to your point, Mickey, I mean that is essentially the reason we have been focused more on the secondary market and secondary market trading than on the primary market as of late.

但對於你的觀點，米奇，我的意思是，這基本上就是我們最近更多地關註二級市場和二級市場交易而不是一級市場的原因。

Yes, I actually wanted to ask you about the secondary market, Jonathan. From what I understand, after the April payments were made on CLO equity, there was a lot of CLO equity offered into the secondary market. How did that deal flow impact your ability to push out the reinvestment period? And what sort of estimated yields are you getting on current deal flow?

是的，喬納森，我其實想問你關於二級市場的問題。據我了解，在 4 月份對 CLO 股權進行付款後，二級市場上提供了大量 CLO 股權。該交易流程如何影響您推遲再投資期的能力？您從當前的交易流程中獲得了什麼樣的估計收益？

Sure. I mean, as a general matter, Mickey, to your point, a more liquid and a greater volume of secondary market activity, we think is beneficial to us. We are, as you know, active portfolio managers within this asset class. We turn this portfolio over time and have done historically. So more liquidity, more volume, again, can be more conducive in terms of our ability to push out our reinvestment period. Joe?

當然。我的意思是，一般來說，米奇，就你的觀點而言，流動性更強、二級市場活動量更大，我們認為對我們有利。如您所知，我們是該資產類別中的活躍投資組合經理。隨著時間的推移，我們改變了這個投資組合，並且已經完成了歷史。因此，就我們推遲再投資期的能力而言，更多的流動性、更多的交易量再次更有利於我們。喬？

Yes. Now like you said, we definitely saw a lot of activity post payments come out. We were able to take advantage of that just given the volume. We think we were able to pick up some attractive paper. In terms of future expectations, we don't, I think, really get into that, but see very attractive risk-adjusted profiles in the secondary market right now.

是的。現在就像你說的，我們確實看到了很多活動後付款。鑑於數量，我們能夠利用它。我們認為我們能夠挑選出一些有吸引力的論文。就未來預期而言，我認為我們並沒有真正深入探討，但現在在二級市場上看到了非常有吸引力的風險調整後概況。

Okay. Core NII was down quarter-to-quarter, even as the spread between 1-month and 3-month interest rates compressed, which had been a problem for several quarters. I would have expected that to help the CLO market in terms of the April distribution. So can you just walk us through at a high level what caused core NII to decline quarter-to-quarter?

好的。儘管 1 個月和 3 個月利率之間的利差縮小，但核心 NII 季度環比下降，這已成為幾個季度的問題。我原以為這會在 4 月份的發行方面幫助 CLO 市場。那麼，您能否從一個較高的層面向我們介紹導致核心 NII 逐季下降的原因？

Sure. There were really 2 major components. One was that the 1-month, 3-month basis had its widest point in October when the liabilities for January were being set. So remember, the quarter we're looking at are mainly composed of the January payments. So that was really the payments that took the blunt of this 1-month, 3-month basis. Since then, it's definitely tightened, and we expect to see that continue to normalize going forward, again, just based on the publicly available forward curves. And specifically within Oxford Lane's portfolio, we had an unusually large number of first-time payers, which make the inaugural distribution, which is an outsized payment the previous quarter. So when you're looking for that quarter-over-quarter core comparison, that explains that delta, you can say.

當然。確實有兩個主要組成部分。一個是 1 個月、3 個月的基差在 10 月份達到最寬點，當時正在確定 1 月份的負債。所以請記住，我們正在查看的季度主要由一月份的付款組成。所以這真的是在這個 1 個月、3 個月的基礎上直接支付的款項。從那以後，它肯定收緊了，我們希望看到它繼續正常化，再次基於公開可用的遠期曲線。特別是在 Oxford Lane 的投資組合中，我們有數量異常多的首次付款人，他們進行了首次分配，這是上一季度的超額付款。因此，當你在尋找季度環比核心比較時，你可以說這解釋了這個增量。

So if I'm understanding you correctly, are you saying that the April payments were meaningfully better than the January payments on a relative basis?

所以，如果我沒理解錯的話，你是說 4 月份的付款相對於 1 月份的付款明顯好一些嗎？

Yes, that's okay.

是的，沒關係。

Correct. Yes.

正確的。是的。

Okay. And is that the rationale for raising the dividend above the core NII you reported for this current quarter?

好的。這是將股息提高到您報告的本季度核心 NII 之上的理由嗎？

The dividend declaration, Mickey, is really taking into account a larger set of factors. We're looking at cash flow. We're looking at core NII. We're looking at NAV. We're looking at our own internal projections. All of these things are being considered by the Board in setting the distribution.

米奇的股息申報確實考慮了更多因素。我們正在研究現金流。我們正在研究核心 NII。我們正在研究資產淨值。我們正在研究我們自己的內部預測。董事會在設定分配時會考慮所有這些事情。

The next question comes from Matthew Howlett from B. Riley.

下一個問題來自 B. Riley 的 Matthew Howlett。

Just first on rating agencies. Have you seen any sort of meaningful change in upgrades, downgrades since this bank turmoil started?

首先是評級機構。自從這次銀行動蕩開始以來，您是否看到過升級、降級方面的任何有意義的變化？

Yes. So I think we continue to see downgrades, outpaced upgrades in terms of how that flows through the CLO buckets. They're definitely increasing and getting closer to that 7.5% bucket, but there's still some room, and we still see managers continue to reduce CCC risk where they see appropriate. So it's definitely something we're keeping an eye on. But yes, right now, we still see downgrades picking up slowly, but steadily.

是的。因此，我認為我們繼續看到降級，就其如何流經 CLO 桶而言，升級超過了升級。他們肯定在增加並接近 7.5% 的桶，但仍有一些空間，我們仍然看到管理人員繼續在他們認為合適的地方降低 CCC 風險。所以這絕對是我們正在關注的事情。但是，是的，現在，我們仍然看到降級緩慢但穩步上升。

Got you. And then I mean, from just a high level, I mean when you look at -- I mean defaults are still low, you obviously picked up a little bit. I'd love to hear so your expectation is this just sort of a normalization. Have you seen anything idiosyncratic on maturity defaults that coming up so far, are people able to refinance? Just curious at a high level what you're seeing in the leveraged loan market today.

明白了然後我的意思是，從高水平來看，我的意思是當你看到——我的意思是默認值仍然很低，你顯然有所回升。我很想听聽你的期望是這只是一種正常化。到目前為止，您是否看到任何關於到期違約的特殊情況，人們能夠再融資嗎？只是好奇您今天在槓桿貸款市場上看到的情況。

Sure. Matt, I'm not sure we're seeing anything radically different from what everyone else is seeing. We're not seeing the kind of idiosyncratic events that wild outliers that you referenced. But at the same time, I think we're preparing, as Joe said, for higher default rates overall, our model certainly take account of that, especially with respect to certain profiles and certain collateral pools. So said against that is the fact that the LSTA is sitting with the 93 handle, and there's a potentially powerful pull-to-par. So all of these things, we seek to account for in modeling out our projected cash flows and total returns.

當然。馬特，我不確定我們是否看到了與其他人所看到的截然不同的東西。我們沒有看到您提到的異常異常的那種特殊事件。但與此同時，我認為我們正在為整體上更高的違約率做準備，我們的模型肯定會考慮到這一點，尤其是在某些情況下和某些抵押品池方面。所以反對這一點的事實是 LSTA 位於 93 手柄上，並且有一個潛在的強大的 pull-to-par。因此，所有這些事情，我們都試圖在為我們的預計現金流和總回報建模時考慮在內。

And that leads into the next question, Jonathan. When you look at Oxford Lane, you guys are the leader -- have been the leader years in the CLO market. If you think about the Fed, them potentially on hold now and the [Ford] market projecting easing at some point this year or next year and whether you -- you believe it or not, how does the -- how do you position Oxford going forward? It's going to be likely a change in the interest rate cycle. And what can you tell us sort of investors how Oxford Lane historically benefit from lower rates?

這就引出了下一個問題，Jonathan。當你看牛津巷時，你們是領導者——多年來一直是 CLO 市場的領導者。如果你考慮美聯儲，他們現在可能會按兵不動，[福特]市場預計今年或明年某個時候會放寬政策，不管你信不信，你如何看待牛津大學的發展向前？這很可能是利率週期的變化。你能告訴我們什麼樣的投資者牛津巷歷史上如何從低利率中受益？

Sure. As you said, we've taken into account the forward curves. We try, as Jonathan mentioned, to try to lengthen that reinvestment period as much as possible.

當然。正如您所說，我們已經考慮了遠期曲線。正如喬納森所說，我們嘗試盡可能延長再投資期。

Which really, Matt, represents the best risk mitigant structurally that we're able to affect. But -- sorry, Joe.

馬特，這真的代表了我們能夠影響的結構上最好的風險緩解劑。但是——對不起，喬。

Yes. So in combination with length and the reinvestment period, relative value trading. If we do see some mid-length or shorter data deals just to increase our margin safety from an absolute basis and also moving up manage (inaudible), participating and investing in these managers who have proven themselves to be good credit selectors or who we think we'll be able to getting these lender groups, which will be able to be the leaders in these workouts where we see some difficult situations in the future.

是的。所以結合長短和再投資週期，相對價值交易。如果我們確實看到一些中等長度或較短的數據交易只是為了從絕對基礎上提高我們的保證金安全並提升管理水平（聽不清），參與和投資這些已證明自己是優秀信貸選擇者或我們認為的經理人我們將能夠獲得這些貸方團體，它們將能夠成為我們在未來看到一些困難情況的這些鍛煉中的領導者。

Right, and at the end of the day, obviously, the collateral pool is vitally important to the performance of these structures. But equally important -- sometimes of equal importance is the total return that we're going to receive or we're projecting to receive based on the arbitrage that we're presented with in a particular deal structure. So we are, in some cases, able to seek to compensate for collateral pool risk by virtue of either our entry price or some combination of that plus the inventory structure itself and the arbitrage based on the cost of capital for the CLO overall. So these are all things that we're thinking about all of the time.

是的，歸根結底，抵押品池顯然對這些結構的性能至關重要。但同樣重要 - 有時同樣重要的是我們將獲得的總回報或我們預計將根據特定交易結構中的套利獲得的回報。因此，在某些情況下，我們能夠通過我們的入場價或入場價的某種組合加上庫存結構本身以及基於 CLO 整體資本成本的套利來尋求補償抵押品池風險。所以這些都是我們一直在考慮的事情。

Yes. And my thought was exactly that does that arbitrage increase generally rates are going down as opposed to going up and I look at your balance sheet, you have low-cost locked-in sticky debt. I know (inaudible) in the money, but I mean could you -- are you thinking about some point exploring more unsecured debt and things of that if the rate cycle does begin to change?

是的。我的想法正是，套利增加通常會導致利率下降而不是上升，我看看你的資產負債表，你有低成本鎖定的粘性債務。我知道（聽不清）錢，但我的意思是，如果利率週期確實開始改變，你是否正在考慮探索更多無擔保債務以及類似的事情？

I mean, Matt, we're looking all of the time at our overall capital structure. We're not seeking to change our liability stack at the moment, but to the extent the market provides us with -- and we're very happy with the state of our overall liabilities right now. But these are things that we're looking at in real time based on the use of proceeds that we're able to deploy and the cost of capital that the market presents us with.

我的意思是，馬特，我們一直在關注我們的整體資本結構。我們目前不打算改變我們的負債結構，但在市場為我們提供的範圍內——我們對我們目前的整體負債狀況非常滿意。但這些是我們根據我們能夠部署的收益使用情況和市場呈現給我們的資本成本實時查看的內容。

Appreciate that. You've done a terrific job really positioning the company for this and managing through. So I look forward to the next stage of the cycle.

感謝。你做得非常出色，真正為公司定位並進行了管理。所以我期待週期的下一階段。

Thank you, Matt, very much. Thanks.

非常感謝你，馬特。謝謝。

This concludes today's Q&A session. So I now hand the call back over to CEO, Jonathan Cohen for some concluding remarks.

今天的問答環節到此結束。因此，我現在將電話轉回給首席執行官喬納森科恩，以作一些總結性發言。

Thank you very much, operator. I'd like to thank everybody who listened to the call today and who listens to the call on the replay. We look forward to speaking to you again soon. Thanks very much.

非常感謝你，接線員。我要感謝今天收聽電話會議和重播電話會議的所有人。我們期待很快再次與您交談。非常感謝。

This concludes today's call. Thank you very much for your attendance. You may now disconnect your lines.

今天的電話會議到此結束。非常感謝您的出席。您現在可以斷開線路。