Sixth Street Specialty Lending Inc (TSLX) 2020 Q3 法說會逐字稿

Good morning, and welcome to Sixth Street Specialty Lending Incorporated September 30, 2020 Quarterly Earnings Conference Call.

早安，歡迎參加第六街專業貸款公司 2020 年 9 月 30 日季度財報電話會議。

Before we begin today's call, I would like to remind our listeners that remarks made during the call may contain forward-looking statements. 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.

在我們開始今天的電話會議之前，我想提醒我們的聽眾，電話會議期間的言論可能包含前瞻性陳述。本次電話會議中除歷史事實陳述外的其他陳述可能構成前瞻性陳述，不能保證未來業績或結果，並涉及許多風險和不確定性。

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 Sixth Street Specialty Lending, Inc.'s filings with the Securities and Exchange Commission. The company assumes no obligation to update any such forward-looking statements.

由於多種因素的影響，實際結果可能與前瞻性陳述中的結果有重大差異，其中包括 Sixth Street Specialty Lending, Inc. 向美國證券交易委員會提交的文件中不時描述的因素。該公司不承擔更新任何此類前瞻性陳述的義務。

Yesterday, after the market closed, the company issued its earnings press release for the third quarter ended September 30, 2020, and posted a presentation to the Investor Resources section of its website, www.sixthstreetspecialtylending.com. The presentation should be reviewed in conjunction with the company's Form 10-Q filed yesterday with the SEC. Sixth Street Specialty Lendings, Inc. earnings release is also available on the company's website under the Investor Resources section.

昨天收盤後，該公司發布了截至 2020 年 9 月 30 日的第三季收益新聞稿，並在其網站 www.sixthstreetspecialtylending.com 的投資者資源部分發布了簡報。該演示文稿應與該公司昨天向 SEC 提交的 10-Q 表格一起進行審查。 Sixth Street Specialty Lendings, Inc. 的收益發布也可以在該公司網站的投資者資源部分找到。

Unless noted otherwise, all performance figures mentioned in today's prepared remarks are as of and for the third quarter ended September 30, 2020. As a reminder, this call is being recorded for replay purposes.

除非另有說明，今天準備好的發言中提到的所有業績數據均截至 2020 年 9 月 30 日的第三季。謹此提醒，本次電話會議正在錄音以供重播之用。

I will now turn the call over to Joshua Easterly, Chief Executive Officer of Sixth Street Specialty Lending, Inc.

我現在將把電話轉給第六街專業貸款公司執行長約書亞‧伊斯特利 (Joshua Easterly)。

Thank you. Good morning, everyone, and thank you for joining us. We recognize that the ongoing pandemic continues to present a very real and unique challenges for everyone and their families, so we're grateful to those who are able to join us today and thank all our stakeholders, wherever they are, for their continued interest and partnership. Once again, I'm here today with my partner and our President, Bo Stanley, and our CFO, Ian Simmonds, both of whom we will hear from later on this call.

謝謝。大家早安，感謝您加入我們。我們認識到，持續的大流行繼續給每個人及其家人帶來非常現實和獨特的挑戰，因此我們感謝今天能夠加入我們的人們，並感謝我們所有的利益相關者，無論他們身在何處，對他們的持續關注和支持合夥。今天，我再次與我的合作夥伴兼總裁博·斯坦利 (Bo Stanley) 以及首席財務官伊恩·西蒙茲 (Ian Simmonds) 一起出席，稍後我們將在本次電話會議上聽取他們的發言。

After the market closed yesterday, we reported strong third quarter results with net investment income per share of $0.61, over-earning our Q3 base dividend per share by $0.20. Net income per share for the quarter was $1.21. These results correspond to an annualized return on equity on net investment income of 15.1% and net income of 30.1%.

昨天收盤後，我們公佈了強勁的第三季業績，每股淨投資收益為 0.61 美元，比第三季每股基本股息高出 0.20 美元。該季度每股淨利潤為 1.21 美元。這些結果對應的投資收益年化股本回報率為 15.1%，淨利潤為 30.1%。

On a year-to-date basis, we've generated an annualized return on equity on net investment income of 13.5% and net income of 14.7% based on the beginning year pro forma net asset value per share of $16.77, which is adjusted for the impact of our Q4 2019 supplemental dividend of $0.06 per share.

年初至今，我們的淨投資收益年化股本回報率為 13.5%，淨利潤為 14.7%，基於年初預估每股資產淨值 16.77 美元（經調整） 2019 年第四季度每股0.06 美元的補充股息的影響。

Of note, these annualized year-to-date return on -- ROEs both exceed our average annualized performance since our IPO through the end of 2019, which we think is notable given the difficult operating conditions experienced during the first 3 quarters of 2020. That said, based on market conditions today, we believe there are tail risks that all BDC portfolios are subject to, including credit risk and earning headwinds from LIBOR, which in our portfolio is offset by our LIBOR floors and the floating rate nature of our liabilities.

值得注意的是，這些年初至今的年化淨資產回報率均超過了我們自IPO 以來截至2019 年底的平均年化業績，考慮到2020 年前3 季度經歷的困難經營狀況，我們認為這一點值得注意。表示，根據當今的市場狀況，我們認為所有BDC 投資組合都面臨尾部風險，包括信用風險和LIBOR 的盈利阻力，這些風險在我們的投資組合中被我們的LIBOR 下限和負債的浮動利率性質所抵消。

Our strong net investment income this quarter was a function of both robust interest and fee income as well as lower interest expense attributed to the 100% floating rate nature of our liability structure, which Ian will cover in more detail. This quarter's net income was supported by unrealized gains related to portfolio company-specific events, spread related unrealized gains from the continued tightening of credit risk premiums during Q3 and realized gains from the sale of our AFS equity position at a price that was significantly above our prior quarter's unrealized mark, which Bo will cover later on the call.

本季我們強勁的淨投資收入是強勁的利息和費用收入以及較低的利息支出的函數，這歸因於我們負債結構的 100% 浮動利率性質，伊恩將對此進行更詳細的介紹。本季的淨利潤受到以下因素的支撐：與投資組合公司特定事件相關的未實現收益、第三季信用風險溢價持續收緊帶來的利差相關未實現收益，以及以遠高於我們的價格出售AFS 股票頭寸的已實現收益。上一季未實現的目標，Bo 稍後將在電話會議中討論。

This quarter's operating results contributed to the growth in our net asset value per share, which hit a record high of $16.87 at the end of Q3. This represents approximately a 5% increase from Q2 and a 1% increase from our 2019 year-end pro forma NAV per share of $16.77. If we were to add back the impact of the $0.50 per share of special dividends that were paid during Q2, we've grown net asset value per share by approximately 4% year-to-date.

本季的營運業績推動了我們每股資產淨值的成長，每股資產淨值在第三季末創下了 16.87 美元的歷史新高。這比第二季度增長了約 5%，比 2019 年末每股預計資產淨值 16.77 美元增長了 1%。如果我們再加上第二季支付的每股 0.50 美元特別股息的影響，今年迄今為止，我們每股資產淨值增長了約 4%。

To reflect on this for a moment, in a year where we've experienced tremendous market volatility and economic uncertainty, we've actually been able to grow net asset value per share while paying our highest level of dividends for the first 3 quarters of the year. This reinforces our belief that we've created a differentiated business model that not only survives, but has the ability to outperform during periods of uncertainty.

回想一下，在我們經歷了巨大的市場波動和經濟不確定性的一年裡，我們實際上能夠成長每股資產淨值，同時支付前三個季度最高水準的股息。年。這強化了我們的信念，即我們已經創建了一種差異化的商業模式，不僅能夠生存下來，而且有能力在不確定時期表現出色。

Notable drivers of net asset value growth year-to-date include $0.47 of over-earning against our base dividend, $0.23 of unrealized gains from the impact of effective LIBOR floors of 1.1% across our portfolio versus 36 basis points for the broadly syndicated loan market, $0.12 of net mark-to-market gains on our interest rate swaps primarily related to our 2022 and 2023 notes, and $0.11 of net realized gains on investments.

年初至今淨資產價值成長的顯著驅動因素包括我們的基本股利超額獲利0.47 美元，我們投資組合中1.1% 的有效LIBOR 下限（相對於廣泛銀團貸款市場的36 個基點）的影響帶來的未實現收益0.23 美元、我們的利率互換的按市值計算的淨收益為 0.12 美元，主要與我們的 2022 年和 2023 年票據相關，以及投資實現的淨收益為 0.11 美元。

In the short periods of volatility across Q2 and across Q3, we deployed approximately $150 million of capital across a combination of secondary investments and opportunistic financings. Through quarter end, these investments have generated $24.4 million of P&L, of which $9.7 million has been recognized in investment income. Though -- therefore, post fees, we've generated to date $22.7 million of value or $0.34 per share solely through investments we made during the period of volatility earlier this year.

在第二季和第三季的短期波動期間，我們透過二級投資和機會融資的組合部署了約 1.5 億美元的資本。截至季末，這些投資已產生 2,440 萬美元的損益，其中 970 萬美元已確認為投資收益。因此，就後期費用而言，迄今為止，我們僅透過今年稍早波動期間的投資就創造了 2,270 萬美元的價值，即每股 0.34 美元。

Based on our net asset value rebound and the over-earning of our base dividend this quarter, our Board declared a supplemental dividend in accordance with our formulaic dividend approach. A supplemental dividend of $0.10 per share, which is half of the quarter's over-earning was declared yesterday to shareholders of record as of November 30, payable on December 31. Our Board has also declared a fourth quarter base dividend per share of $0.41 to shareholders of record as of December 15, payable on January 15. Adjusted for the impact of the supplemental dividend related to this quarter's earnings, Q3 pro forma net asset value per share was $16.77.

基於本季資產淨值回升以及基本股利超額獲利，董事會依公式股利法宣派補充股利。昨天向截至11 月30 日登記在冊的股東宣布派發每股0.10 美元的補充股息，佔本季度超額盈利的一半，並於12 月31 日支付。董事會還宣布向股東派發每股0.41 美元的第四季度基本股利截至 12 月 15 日的記錄，將於 1 月 15 日支付。根據與本季收益相關的補充股利的影響進行調整後，第三季預計每股資產淨值為 16.77 美元。

Now let me shift over to a brief update on our portfolio. The latest performance data continues to support our confidence in the overall health of our borrowers. While none of our portfolio companies have been immune to the economic impact of COVID, only 11% of our portfolio by fair value at quarter end have experienced meaningful performance issues directly related to it.

現在讓我來簡單介紹一下我們的投資組合。最新的業績數據繼續支持我們對借款人整體健康狀況的信心。雖然我們的投資組合公司沒有一家能夠免受新冠疫情的經濟影響，但以季末公允價值計算，我們的投資組合中只有 11% 經歷了與其直接相關的重大績效問題。

We believe the relative resilience of our portfolio is mostly a result of the deliberate shift we made in late 2014 towards a more defensive portfolio construction. Today, 95% of our portfolio by fair value is first lien, and nearly 75% of our portfolio by fair value is comprised of mission-critical software businesses with sticky, predictable revenue characteristics. These businesses also tend to have variable cost structures that can be flexed down to support debt service and protect liquidity in cases of challenging operating environments. The generally [acyclical] (added by company after the call) nature of our portfolio, along with its first lien orientation, shorter weighted average life and above-market LIBOR floors contribute to its lower beta characteristics to the benefit of our shareholders in times of market volatility.

我們認為，我們投資組合的相對彈性主要是由於我們在 2014 年底有意轉向更具防禦性的投資組合建設。如今，以公允價值計算，我們的投資組合中有95% 是第一留置權，以公允價值計算，我們的投資組合中有近75% 由具有黏性、可預測收入特徵的任務關鍵型軟體業務組成。這些企業也往往具有可變成本結構，可以在經營環境充滿挑戰的情況下降低成本以支持償債並保護流動性。我們投資組合的整體[非週期性]（由公司在電話會議後添加）性質，以及其第一留置權導向、較短的加權平均壽命和高於市場的倫敦銀行間同業拆借利率（LIBOR）下限，有助於其較低的貝塔特徵，從而在經濟困難時期為我們的股東帶來利益。市場波動。

At quarter end, our debt portfolio had a weighted average fair value mark of 99, up 3 percentage points from its recent trough at the end of Q1, but below pre-COVID levels of approximately par at the beginning of the year. Meanwhile, the leveraged loan index at quarter end had a weighted average bid price of approximately 95, up 11 percentage points from the end of March and also below its pre COVID levels of approximately 97 at the end of the year. As we've previously pointed out, the lower beta of our portfolio is due to a shorter weighted average life and higher LIBOR floors compared to the leveraged loan market. Note that the weighted average bid price for LCD first lien software names like our portfolio also experienced less volatility than the broader loan index during this period.

截至季末，我們的債務投資組合的加權平均公允價值為 99，比第一季末的近期低點上升了 3 個百分點，但低於新冠疫情爆發前的年初水準。同時，季末槓桿貸款指數加權平均買入價約95，較3月底上升11個百分點，也低於疫情前年底約97的水平。正如我們之前指出的，與槓桿貸款市場相比，我們投資組合的貝塔係數較低是由於加權平均期限較短和 LIBOR 下限較高。請注意，在此期間，像我們的投資組合這樣的 LCD 第一留置權軟體名稱的加權平均出價的波動性也小於更廣泛的貸款指數。

While our portfolio has held up relatively well over the past couple of quarters, we'd like to reiterate that credit tail risk do exist in our portfolio and more so today than pre-COVID. At quarter end, 12% of our portfolio had a fair value mark of less than 98 compared to only 8% of the portfolio in Q4 2019. The weighted average fair value mark for names in this tail at the quarter end was 88 compared to 96 at Q4 2019. Revisiting the concept of antifragility, the headwinds in our portfolio from credit year-to-date have been more than offset by the tailwinds from the value we've been able to create during the periods of market volatility across Q2 and Q3.

雖然我們的投資組合在過去幾季中表現相對較好，但我們想重申，我們的投資組合中確實存在信用尾部風險，而且今天比新冠疫情之前更是如此。截至季末，我們的投資組合中有12% 的公允價值分數低於98，而2019 年第四季只有8%。該尾部名稱的加權平均公允價值分數在季末為88，而2019 年第四季季度為96 2019 年第四季。重新審視反脆弱性的概念，我們的投資組合從年初至今的信貸逆風已經被我們在第二季度和第三季度市場波動期間能夠創造的價值的順風所抵消。 。

There was a slight increase in our non-accruals this quarter from 40 basis points to 90 basis points on a fair value basis. This was primarily driven by the addition of our first lien loan in MD America, an upstream E&P company, which was partially offset by removal of our pre-petition Neiman Marcus term loan and a partial roll-up of our J.C. Penney's pre-petition first lien term loan into the DIP term loan.

以公允價值計算，本季我們的非應計費用略有增加，從 40 個基點增加到 90 個基點。這主要是由於我們在MD America（一家上游勘探與生產公司）增加了第一筆留置權貸款，該貸款被取消我們的申請前Neiman Marcus 定期貸款和J.C. Penney 的申請前第一筆部分匯總所部分抵銷。留置權定期貸款轉為DIP定期貸款。

On MD America, we received our regularly scheduled cash interest payment during this -- during the quarter but applied those proceeds to the amortized cost of our position, given our view of an imminent reorg of the company's capital structure that would result in a reduction of the value of our loan. Post quarter end, the company made a voluntary paydown of $1.4 million on our position and subsequently filed for protection under Chapter 11 to implement a Prepackaged Plan of Reorganization. For Q4, we expect to put $9 million of our loan or approximately 70% of our remaining prepetition loan at 9/30 fair value back on accrual status upon the company's emergence from Chapter 11. Our remaining investment will be restructured into an equity position. Note that at quarter end, our total energy exposure was 2.4% of the portfolio at fair value.

對於MD America，我們在本季度收到了定期支付的現金利息，但考慮到我們認為公司即將進行資本結構重組，這將導致我們的資本結構減少，因此我們將這些收益用於我們頭寸的攤餘成本。我們的貸款價值。季度末後，該公司自願償還了我們的 140 萬美元，並隨後根據第 11 章申請保護，以實施預先打包的重組計劃。對於第四季度，我們預計在公司擺脫第11 章破產法後，將900 萬美元的貸款或剩餘預申請貸款的約70%（以9/30 公允價值計算）恢復到應計狀態。我們的剩餘投資將重組為股權部位。請注意，截至季末，我們的總能源曝險以公允價值計算佔投資組合的 2.4%。

With that, I'd like to turn the call over to Bo to walk you through our portfolio activity and metrics in more detail.

接下來，我想將電話轉給 Bo，讓您更詳細地了解我們的投資組合活動和指標。

Thanks, Josh. During the third quarter, conditions continued to stabilize in the leveraged loan market as unprecedented levels of fiscal and monetary stimulus supported ongoing investor demand for risk assets. Secondary loan prices continue to recover in Q3 and primary issuance activity slowly reemerged in connection with opportunistic financings and M&A.

謝謝，喬許。第三季度，槓桿貸款市場狀況持續穩定，前所未有的財政和貨幣刺激水準支撐了投資者對風險資產的持續需求。第三季二級貸款價格持續回升，一級發行活動因機會性融資和併購而緩慢恢復。

On an absolute basis, however, leveraged loan activity in Q3 remained muted compared to historical levels, resulting in a 10-year low for year-to-date new issuance volumes. These trends carried across to the middle markets where overall activity remained modest. However, we noticed a notable increase in sponsor activity later in the quarter and into Q4.

然而，從絕對值來看，第三季的槓桿貸款活動與歷史水準相比仍然低迷，導致今年迄今的新發行量降至 10 年來的最低水準。這些趨勢也延續到了中間市場，那裡的整體活動仍然溫和。然而，我們注意到本季末和第四季的贊助商活動顯著增加。

In contrast to the muted issuance activity in the loan markets, we had record Q3 originations activity with our highest level of commitment since inception at $436 million and our second highest level of fundings at $332 million. This activity was across 12 new and 4 existing portfolio companies. As alluded to in our last earnings call, despite the lack of middle market sponsor M&A since March, we had a very strong pipeline headed into Q3 given our diverse sourcing channels and deep sector relationships as part of our thematic investment approach. At a high level, this quarter's new investments were predominantly non-sponsored transactions where our underwriting and sector capabilities along with the significant dry powder across the Sixth Street platform allowed us to be value-add partners for companies and their management teams.

與貸款市場的低迷發行活動形成鮮明對比的是，我們第三季的發起活動創下了紀錄，自成立以來我們的最高承諾水準為 4.36 億美元，第二高的融資水準為 3.32 億美元。這項活動涉及 12 家新投資組合公司和 4 家現有投資組合公司。正如我們在上次財報電話會議中提到的，儘管自3 月以來缺乏中間市場贊助商併購，但鑑於我們多樣化的採購管道和深厚的行業關係作為我們主題投資方法的一部分，我們在進入第三季時擁有非常強大的管道。從高水準來看，本季的新投資主要是非贊助交易，我們的承銷和行業能力以及第六街平台上的重要乾粉使我們能夠成為公司及其管理團隊的增值合作夥伴。

Examples of this include the $500 million term loan facility that we underwrote with our affiliated funds for the publicly traded biopharmaceutical company, Biohaven. Similar to our prior investments in Nektar and Ironwood, our Biohaven facility is secured by all assets of the company, including royalty streams from an FDA-approved drug and therefore faces no underlying regulatory approval risk. In addition, certain delayed draw portions of our commitments are only available subject to the company meeting key revenue milestones. We've had historical success with our investments in this underlying theme and believe Biohaven continues to exemplify the strength and expertise of Sixth Street's healthcare franchise.

這方面的例子包括我們用附屬基金為上市生物製藥公司 Biohaven 承保的 5 億美元定期貸款融資。與我們先前對 Nektar 和 Ironwood 的投資類似，我們的 Biohaven 設施由公司的所有資產（包括 FDA 批准的藥物的特許權使用費）提供擔保，因此不面臨潛在的監管批准風險。此外，我們承諾的某些延遲提取部分只有在公司達到關鍵收入里程碑的情況下才可用。我們在這一基本主題上的投資取得了歷史性的成功，並相信 Biohaven 繼續體現了第六街醫療保健特許經營的實力和專業知識。

Other new investments we originated this quarter include the $175 million ABL term loan for Designer Brands, of which we hold $50 million and $125 million accounts receivable securitization facility for Centric Brands, both of which continue to exemplify our differentiated capabilities as solution providers in the consumer and retail sector. Post quarter end, we fully exited our investment in Centric Brands in connection with a new financing obtained by the company as it emerged from bankruptcy. As Josh alluded to in his opening remarks, during our 3-month hold period, we generated a P&L of $3.8 million on our investment, representing a gross unlevered IRR of 31% on our capital invested.

我們本季發起的其他新投資包括為Designer Brands 提供的1.75 億美元ABL 定期貸款，其中我們為Centric Brands 持有5,000 萬美元和1.25 億美元的應收帳款證券化融資，這兩項投資繼續體現了我們作為消費者解決方案提供者的差異化能力和零售業。季度末後，我們完全退出了對 Centric Brands 的投資，因為該公司擺脫破產後獲得了新的融資。正如喬許在開場白中提到的那樣，在我們的 3 個月持有期內，我們的投資產生了 380 萬美元的損益，相當於我們投資資本的 31% 的總無槓桿 IRR。

Other ways we created value during the short bursts of volatility across Q2 and Q3 were through small opportunistic secondary market purchases in sectors or names that we know well. For example, we purchased $50 million par value of Tech Data syndicated FILO term loan at 92 in July and completed the sale of our entire position post quarter end at a weighted average price of 98.4. Vertafore's first lien term loan was another liquid security that we purchased in late March at a price of 78.25 and sold during Q3 at a price of 99.8. Finally, the combination of our small BBB and BB rated CLO purchases throughout Q2 and Q3 have to-date resulted in nearly $0.5 million of P&L for our portfolio. Though not one of our primary investment themes, these opportunistic secondary market purchases continue to be an efficient way for us to enhance the returns profile of our portfolio when the market environment permits.

在第二季和第三季的短暫波動期間，我們創造價值的其他方式是透過二級市場小額機會主義購買我們熟悉的產業或名稱。例如，我們在 7 月以 92 的價格購買了票面價值 5000 萬美元的 Tech Data 銀團 FILO 定期貸款，並在季度末以 98.4 的加權平均價格完成了整個頭寸的出售。 Vertafore 的第一筆留置權定期貸款是我們在 3 月底以 78.25 的價格購買的另一種流動證券，並在第三季以 99.8 的價格出售。最後，我們在第二季和第三季購買的小額 BBB 和 BB 級 CLO 迄今已為我們的投資組合帶來了近 50 萬美元的損益。雖然這不是我們的主要投資主題之一，但在市場環境允許的情況下，這些機會主義的二級市場購買仍然是我們提高投資組合回報率的有效方法。

Q3 was also active for us on the repayment side, with $253 million of repayments across 8 full and 5 partial realizations and the combination of funding and repayment activity during the quarter resulted in net fundings of $79 million. The bulk of this quarter's repayments were driven by 3 investments: our $72 million Neiman ABL FILO upon the company's reemergence from bankruptcy; our $51 million Dye & Durham first lien loan in connection with the company's IPO; and our $45 million AFS first lien loan and equity positions in connection with the sale of the company to a strategic buyer.

第三季我們在還款方面也很活躍，8 項全部實現和 5 項部分實現共償還了 2.53 億美元，本季融資和還款活動相結合，淨資金達到 7,900 萬美元。本季的大部分還款是由 3 項投資推動的：我們的 Neiman ABL FILO 是公司從破產中恢復過來後的 7,200 萬美元；我們與公司首次公開募股有關的 5,100 萬美元 Dye & Durham 第一留置權貸款；以及我們與將公司出售給策略性買家有關的 4,500 萬美元 AFS 第一留置權貸款和股權頭寸。

Some of you may recognize AFS as one of our longest standing portfolio companies, with our first investment dating back to 2011. Since the original investment, we supported the company through various transitions and ownership changes, including the sale of our majority equity ownership stake to the sponsor in 2018. We believe AFS is an example of our asset management capabilities, along with our flexible capital base allow us to be long-term value added partners for management teams and sponsors. For our shareholders, our equity position in AFS was fully realized this quarter at a value of $16.2 million compared to our prior quarter's fair value mark of $7.3 million.

你們中的一些人可能會認為AFS 是我們歷史最悠久的投資組合公司之一，我們的第一筆投資可以追溯到2011 年。自最初投資以來，我們支持該公司經歷了各種過渡和所有權變更，包括將我們的多數股權出售給我們相信 AFS 是我們資產管理能力的一個例子，我們靈活的資本基礎使我們能夠成為管理團隊和贊助商的長期增值合作夥伴。對於我們的股東來說，我們在 AFS 的股權在本季已全部變現，價值為 1,620 萬美元，而上一季的公允價值為 730 萬美元。

Moving now to portfolio yields. The weighted average total yield on our debt and income-producing securities at amortized cost increased by approximately 20 basis points to 10.2% this quarter, primarily driven by the favorable impact of this quarter's funding activity. The yield at amortized cost of new investments in Q3 was 11.5% compared to 10.8% for exited investments. Note that LIBOR movement during Q3 had minimal impact on this quarter's portfolio yield given that LIBOR had already fallen below the effective average LIBOR floor across our portfolio in the prior quarter.

現在轉向投資組合收益率。本季我們的債務和創收證券以攤餘成本計算的加權平均總收益率增加了約 20 個基點，達到 10.2%，這主要是受到本季融資活動的有利影響的推動。第三季新投資的攤餘成本收益率為 11.5%，而已退出投資的攤餘成本收益率為 10.8%。請注意，鑑於上一季 LIBOR 已跌破我們投資組合的有效平均 LIBOR 下限，第三季的 LIBOR 變動對本季投資組合收益率的影響微乎其微。

Now a brief update on our portfolio composition and credit stats. Our top 2 industry exposures continue to be stable led by business services at 22.9% of portfolio at fair value, followed by financial services at 16%. Retail and consumer products was our third highest industry exposure increasing from 11.3% to 13.9% quarter-over-quarter. This was primarily driven by new fundings for Designer Brands and Centric Brands, which was partially offset by the repayment of the Neiman ABL FILO term loan. Pro forma the paydown of Centric Brands, our retail and consumer exposure would have been 10.5% at quarter end and retail names -- with retail names comprising 9.5% of the portfolio and 77% of this exposure consisting of ABL investments.

現在簡要更新我們的投資組合組成和信用統計數據。我們的兩大產業風險敞口持續保持穩定，其中商業服務佔公允價值投資組合的 22.9%，其次是金融服務，佔 16%。零售和消費品是我們的第三大產業，較上季從 11.3% 成長至 13.9%。這主要是由 Designer Brands 和 Centric Brands 的新資金推動的，但 Neiman ABL FILO 定期貸款的償還部分抵消了這筆資金。預計 Centric Brands 的投資額，季末我們的零售和消費者風險敞口將為 10.5%，零售品牌佔投資組合的 9.5%，其中 77% 由 ABL 投資組成。

In September, upon the full repayment of the Neiman ABL FILO and DIP loans, we subsequently funded a new $17 million par value first lien loan related to our exit financing backstop commitment. In our schedule of investments, the roughly $4 million difference between the par value and the cost basis of the new Neiman loan reflects our fees on the backstop, which were payable in common stock of the reorg'd company. Our loan today is trading at a price of approximately 104.75. This, again, was another way that we created value during the volatile market environment earlier this year. We believe our attractive cost basis, along with the company's high-quality assets and improved prospective cash flow profile post restructuring provide considerable downside protection on our investments.

9 月，在全額償還 Neiman ABL FILO 和 DIP 貸款後，我們隨後資助了一筆新的 1700 萬美元面值第一留置權貸款，該貸款與我們的退出融資支持承諾相關。在我們的投資計劃中，新內曼貸款的票面價值和成本基礎之間大約有 400 萬美元的差異，反映了我們的擔保費用，這些費用以重組公司的普通股支付。我們今天的貸款交易價格約為 104.75。這又是我們在今年稍早動盪的市場環境中創造價值的另一種方式。我們相信，我們有吸引力的成本基礎，加上公司的優質資產和重組後改善的預期現金流狀況，為我們的投資提供了相當大的下行保護。

As Josh discussed earlier, the overall performance of our portfolio continues to remain relatively resilient, which is a testament to our team's deep knowledge of the industries where we are active and our close relationships with our portfolio company and management teams. Our portfolio weighted average performance rating was 1.21 compared to 1.23 in Q2 on a scale of 1 to 5 with 1 being the strongest. There were no material changes in the overall credit metrics of our core portfolio companies. Interest coverage this quarter remained flat at 3.3x. Net attachment point was unchanged at 0.4x and net leverage increased slightly from 4.3x to 4.4x, which is on par with our trailing 2-year historical quarterly average. The weighted average annual revenue and EBITDA of our core portfolio companies increased slightly this quarter to $117 million and $36 million given our migration towards larger borrowers as well as organic growth of certain existing borrowers.

正如喬許之前討論的那樣，我們投資組合的整體表現繼續保持相對彈性，這證明了我們的團隊對我們活躍的行業的深入了解以及我們與投資組合公司和管理團隊的密切關係。我們的投資組合加權平均績效評級為 1.21，而第二季為 1.23（以 1 至 5 評分，其中 1 為最強）。我們的核心投資組合公司的整體信用指標並沒有重大變化。本季利息保障倍數維持在 3.3 倍不變。淨附著點維持在 0.4 倍不變，淨槓桿率從 4.3 倍小幅增加至 4.4 倍，與我們過去 2 年歷史季度平均水平持平。鑑於我們向較大借款人的遷移以及某些現有借款人的有機增長，本季度我們核心投資組合公司的加權平均年收入和 EBITDA 略有增長，分別達到 1.17 億美元和 3,600 萬美元。

While the path of this economic recovery remains highly uncertain, based on our close engagement with our borrowers, we don't expect any material deteriorations in the overall performance of our portfolio in the near term.

儘管經濟復甦的路徑仍然高度不確定，但根據我們與借款人的密切接觸，我們預計短期內我們投資組合的整體表現不會出現任何實質惡化。

With that, I'd like to turn it over to Ian.

有了這個，我想把它交給伊恩。

Thank you, Bo. I'll begin with an overview of our balance sheet. Total investments at fair value increased by $118 million quarter-over-quarter to $2.1 billion, primarily driven by this quarter's net funding activity and the net unrealized gains on our investments.

謝謝你，博。我將首先概述我們的資產負債表。以公允價值計算的總投資環比增加 1.18 億美元，達到 21 億美元，主要是受到本季淨融資活動和投資未實現淨收益的推動。

Total principal amount of debt outstanding was $932 million, and net assets were $1.14 billion or $16.87 per share. Our debt-to-equity ratio at quarter end was stable at 0.81x due to the combination of the delevering impact from this quarter's increase in net asset value, offset by net portfolio fundings. Our average debt-to-equity ratio increased from 0.87x to 0.93x quarter-over-quarter due to the timing of our Q3 repayments, which were mostly weighted towards quarter end.

未償債務本金總額為 9.32 億美元，淨資產為 11.4 億美元，即每股 16.87 美元。由於本季資產淨值增加帶來的去槓桿化影響（被淨投資組合資金所抵銷），我們季末的負債股本比率穩定在 0.81 倍。由於我們第三季還款的時間表（大部分是在季度末進行的），我們的平均負債股本比率從上一季的 0.87 倍增至 0.93 倍。

On capital and liquidity, we continue to be strongly positioned, ready to capitalize on potential market dislocations. As Josh discussed, our capital and liquidity position has aided our ability to capture value for our stakeholders during these volatile times.

在資本和流動性方面，我們繼續保持強勢地位，準備利用潛在的市場混亂。正如喬希所討論的，我們的資本和流動性狀況有助於我們在這個動盪時期為利害關係人獲取價值的能力。

Our financial leverage of 0.81x remains well below the regulatory limit of 2x, and we had ample liquidity at quarter end with $1.02 billion of undrawn revolver commitments. For context, our current liquidity represents nearly 50% of our total assets, and we had 12.4x coverage on our $83 million of unfunded commitments available to be drawn by our borrowers based on contractual requirements in the underlying loan agreements. This compares to a peer median using June 30 data of approximately 21% liquidity as a percent of total assets and only 4.4x coverage on unfunded commitments.

我們 0.81 倍的財務槓桿率仍遠低於 2 倍的監管上限，且季度末我們擁有充足的流動性，未提取的左輪承諾金額為 10.2 億美元。就背景而言，我們目前的流動性占我們總資產的近 50%，並且我們對可供借款人根據基礎貸款協議中的合約要求提取的 8300 萬美元無資金承諾提供了 12.4 倍的保障。相較之下，使用 6 月 30 日數據得出的同業中位數顯示，流動性佔總資產的百分比約為 21%，而無資金承諾的覆蓋率僅為 4.4 倍。

At quarter end, our funding mix was comprised of 69% unsecured and 31% secured debt, and our nearest maturity was approximately 2 years away at only $143 million principal amount. We continue to be match funded with a weighted average remaining life of our investments funded with debt of 2 years compared to a weighted average remaining maturity of 4 years on our liabilities and revolver commitments.

截至季末，我們的融資組合由 69% 的無擔保債務和 31% 的有擔保債務組成，最近的到期日約為 2 年，本金金額僅為 1.43 億美元。我們繼續以債務融資的投資的加權平均剩餘期限為 2 年進行配對融資，而我們的負債和循環承諾的加權平均剩餘期限為 4 年。

Turning to our presentation materials. Slide 8 is the NAV bridge for the quarter. As Josh mentioned, the over-earning of our base dividend continued to be an important driver of our NAV growth, contributing a positive $0.20 per share to this quarter's results. There was a $0.07 per share reduction to NAV as we reversed net unrealized gains on investment realizations and recognized these gains into this quarter's net investment income, where applicable. We also benefited from a positive $0.22 per share impact from unrealized gains related to credit spread movements on the valuation of our portfolio, and other changes added a further $0.46 per share to this quarter's NAV. Breaking this last component down, the leading contributors were $0.17 per share of realized gains on our AFS equity position, $0.08 per share of unrealized gains on our Vertellus equity position and $0.07 per share of unrealized gains on our new Neiman Marcus position.

轉向我們的簡報材料。投影片 8 是本季的資產淨值橋。正如喬希所提到的，我們的基本股息的超額盈利仍然是我們資產淨值增長的重要驅動力，為本季度的業績貢獻了每股 0.20 美元的正值。由於我們沖銷了投資變現的未實現淨收益，並將這些收益計入本季度的淨投資收益（如適用），每股資產淨值減少了 0.07 美元。我們還受益於與信用利差變動相關的未實現收益對我們投資組合估值的每股 0.22 美元的積極影響，而其他變化則使本季度的資產淨值進一步增加了每股 0.46 美元。細分最後一個組成部分，主要貢獻者是我們的AFS 股票頭寸的已實現收益每股0.17 美元，我們的Vertellus 股票頭寸的未實現收益每股0.08 美元，以及我們新的Neiman Marcus 頭寸的每股未實現收益0.07 美元。

Moving to the income statement on Slide 10. Total investment income increased to $71.3 million compared to $70.2 million in the prior quarter. This was primarily driven by an increase of $4.4 million in interest and dividend income due to an increase in the average size of our portfolio. Other fees, which consist of prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns, continued to be relatively strong at $9.3 million, led by our fees related to Dye & Durham and our Neiman ABL FILO. Other income increased from $6.5 million to $8.1 million quarter-over-quarter, primarily due to the receipt of a onetime termination fee for a commitment we made in Q1 of 2019, but was never eligible to be funded given the required milestones in the underlying loan agreement were not satisfied.

轉到投影片 10 上的損益表。總投資收入從上一季的 7,020 萬美元增至 7,130 萬美元。這主要是由於我們投資組合平均規模的增加導致利息和股息收入增加了 440 萬美元。其他費用（包括預付款費用和計劃外付款的預付款加速攤銷）繼續相對強勁，達到 930 萬美元，其中與 Dye & Durham 和 Neiman ABL FILO 相關的費用領先。其他收入環比從650 萬美元增加到810 萬美元，主要是因為我們在2019 年第一季做出的承諾收到了一次性終止費，但考慮到基礎貸款所需的里程碑，我們從未有資格獲得資助協議未滿足。

Net expenses this quarter decreased by $1.6 million to $28.2 million primarily driven by lower interest expense from a lower effective LIBOR on our entirely floating rate liability structure. This quarter, our weighted average cost of debt decreased by a notable 90 basis points. This was primarily a function of movement in LIBOR during Q2, which flowed through our cost of debt in Q3 due to the 1 quarter timing lag on the LIBOR reset date on our interest rate swaps.

本季淨費用減少 160 萬美元，至 2,820 萬美元，主要是由於我們完全浮動利率負債結構的有效 LIBOR 較低，利息費用減少。本季度，我們的加權平均債務成本顯著下降了 90 個基點。這主要是倫敦銀行同業拆借利率(LIBOR)變動的第二季函數，由於我們的利率掉期倫敦銀行同業拆借利率(LIBOR)重置日期存在第一季的時間滯後，該變動影響了我們第三季度的債務成本。

As a reminder, given our view that our competitive advantage resides in underwriting and managing credit risk, not interest rate risk, we have a long-standing practice of matching our liabilities with the predominantly floating rate nature of our assets, which are protected on the downside through our LIBOR floors. We do this by implementing fixed to floating interest rate swaps on our fixed rate debt.

提醒一下，鑑於我們認為我們的競爭優勢在於承保和管理信用風險，而不是利率風險，我們長期以來的做法是將我們的負債與我們資產的主要浮動利率性質相匹配，這些資產受到利率風險的保護.倫敦銀行同業拆借利率 (LIBOR) 地板的下行趨勢。我們透過對固定利率債務實施固定利率與浮動利率互換來做到這一點。

While our hedging policy means that we forego some earnings upside in higher interest rate environments, it provides us with valuable earnings and capital support in lower interest rate environments, which is when we may need it the most, given their correlation with recessionary periods.

雖然我們的對沖政策意味著我們在較高利率環境下放棄一些收益上漲空間，但它在較低利率環境下為我們提供了寶貴的收益和資本支持，考慮到它們與經濟衰退時期的相關性，這正是我們最需要的時候。

In falling rate environments, like we've experienced year-to-date, we benefit from net interest margin expansion given a decrease in the cost of our floating rate liabilities, while the earnings power of our contractual floating rate assets is protected by the LIBOR floors that we structured into our loan agreements. The combination of these 2 forces has been the primary driver of the 100 basis points of net interest margin expansion we've experienced year-to-date, equating to incremental earnings of approximately $2.4 million or $0.04 per share.

在利率下降的環境中，就像我們今年迄今為止所經歷的那樣，鑑於我們的浮動利率負債成本下降，我們受益於淨息差擴張，而我們的合約浮動利率資產的盈利能力受到倫敦銀行間同業拆借利率（LIBOR）的保護我們在貸款協議中建構了最低限額。這兩種力量的結合是我們今年迄今淨利差擴大 100 個基點的主要驅動力，相當於增量收益約 240 萬美元或每股 0.04 美元。

Looking ahead to Q4, based on our current asset level yields and assuming an average leverage in line with Q3, we would expect further net interest margin expansion of approximately 10 basis points, based on this quarter's movement in LIBOR.

展望第四季度，基於我們目前的資產水準收益率並假設平均槓桿率與第三季度一致，根據本季度倫敦銀行同業拆借利率(LIBOR) 的變動，我們預計淨利差將進一步擴大約10 個基點。

On the capital side, year-to-date, we've benefited from unrealized mark-to-market gains on our interest rate swaps given the downward movements in the shape of the forward LIBOR curve. At quarter end, we had $31.3 million of cumulative unrealized gains with $13.3 million or $0.20 per share embedded in our 09/30 NAV. The remainder is reflected in the carrying value of our 2024 notes due to our application of hedge accounting on those swaps.

在資本方面，今年迄今為止，鑑於遠期 LIBOR 曲線形狀的下行走勢，我們從利率互換的未實現的按市價計價的收益中受益。截至季末，我們的累計未實現收益為 3,130 萬美元，其中 1,330 萬美元或每股 0.20 美元嵌入我們的 09/30 資產淨值中。由於我們對這些掉期應用了對沖會計，其餘部分反映在我們 2024 年票據的帳面價值中。

As we've seen, the inverse relationship between movements in the forward curve and the mark-to-market on our swaps creates valuable incremental capital cushion for our business in periods of high volatility. We'd like to note that as we approach the maturity of our 2022 and 2023 notes, and therefore, the maturity of our respective swap instruments, any cumulative swap related unrealized gains or losses will unwind from NAV as we recognize their offsetting impact through interest expense. For example, holding the forward LIBOR curve constant as of 09/30, we would expect to see an unwind of $0.09 per year to our NAV per share over the remaining weighted average duration of 2.1 years on our 2022 and 2023 notes as we simultaneously benefit from lower interest expense in our net investment income.

正如我們所看到的，遠期曲線的變動與我們掉期的按市價計價之間的反比關係為我們的業務在高波動時期創造了寶貴的增量資本緩衝。我們要指出的是，隨著我們2022 年和2023 年票據的到期日臨近，以及我們各自互換工具的到期日，任何與互換相關的累計未實現收益或損失都將從資產淨值中消除，因為我們透過利息認識到其抵銷影響費用。例如，截至 09/30，保持遠期 LIBOR 曲線不變，我們預計在 2022 年和 2023 年票據的剩餘加權平均期限 2.1 年中，每股資產淨值將每年減少 0.09 美元，因為我們同時受益由於我們的淨投資收入中的利息支出較低。

With that, let me wrap up with a word on our full year guidance. Year-to-date, we've generated an ROE on net investment income of 13.5% based on year-end 2019 pro forma NAV per share of $16.77. This puts us ahead of our NII guidance, which was based on an ROE target of 11% to 12%. Given the performance of our portfolio to-date and our visibility into the strength of our investment pipeline, we are revising our full year 2020 NII per share guidance to be in excess of $2.11.

最後，讓我總結一下我們的全年指導。年初至今，基於 2019 年底每股預期資產淨值 16.77 美元，我們的淨投資收益 ROE 為 13.5%。這使我們領先於我們的 NII 指導，該指導基於 11% 至 12% 的 ROE 目標。鑑於我們投資組合迄今為止的表現以及我們對投資管道實力的了解，我們正在將 2020 年全年每股 NII 指導修訂為超過 2.11 美元。

With that, I'd like to turn it back to Josh for concluding remarks.

說到這裡，我想把它轉回給喬許做總結發言。

Thank you, Ian. It goes without saying that nobody could have predicted the operating environment we faced for the first 3 quarters of 2020, but we're proud of what our business and our people have been able to accomplish. In the midst of a pandemic, with the majority of our team continuing to work remotely, we've generated record originations activity and are on track to deliver one of the strongest full year ROEs for our shareholders.

謝謝你，伊恩。不用說，沒有人能夠預測我們 2020 年前三個季度面臨的營運環境，但我們為我們的業務和員工所取得的成就感到自豪。在疫情期間，我們的大多數團隊繼續遠距工作，我們創造了創紀錄的發起活動，並有望為我們的股東提供最強的全年股本回報率之一。

In our view, none of this would have been possible without our understanding of the unique constraints and challenges of the BDC model and the measures we've implemented on both sides of our balance sheet to help our business thrive in periods of uncertainty. That said, we continue to evolve our thinking based on our assessment of underlying risks, trends and developments in the world around us. This includes an ongoing assessment of our liquidity and funding profile, as well as an evolution of investment themes into new sectors or strategies we believe our human capital can be applied to generate value for both of our shareholders and our clients.

我們認為，如果我們不了解 BDC 模式的獨特限制和挑戰，以及我們在資產負債表兩側實施的幫助我們的業務在不確定時期蓬勃發展的措施，這一切都不可能實現。也就是說，我們根據對周圍世界的潛在風險、趨勢和發展的評估，繼續發展我們的思維。這包括對我們的流動性和資金狀況的持續評估，以及投資主題向新領域或策略的演變，我們相信我們的人力資本可以用來為我們的股東和客戶創造價值。

As a business, it's hard not to be reflective given that we founded Sixth Street during the financial crisis 11 years ago, and today, we're faced with an ongoing pandemic. In our view, these 2 regressive events have shed light on the fact that we still haven't confronted the history and legacy of institutional racism, and we've continued to live with the consequences of our failure to deal with massive wealth inequality. We firmly believe that the adversity and upheaval in our society today can create tremendous opportunities for improvement, not just lead to dark places. Looking ahead, our hope is that we all, in whatever ways we can, focus on healing conversations, equity and in our roles as market actors insist that we preserve the power of capitalism, which we firmly believe creates the best outcomes for society, albeit in a better, modified way.

作為一家企業，我們很難不反思，因為我們在 11 年前的金融危機期間創立了第六街，而今天，我們面臨著持續的流行病。我們認為，這兩起倒退事件揭示了這樣一個事實：我們仍然沒有正視制度性種族主義的歷史和遺產，並且我們繼續承受著未能解決大規模財富不平等問題的後果。我們堅信，當今社會的逆境和動盪可以創造巨大的改進機會，而不僅僅是導致黑暗。展望未來，我們希望我們所有人，盡我們所能，專注於治癒性對話、公平以及我們作為市場參與者的角色，堅持認為我們要保留資本主義的力量，我們堅信資本主義會為社會創造最好的結果，儘管以更好的、修改的方式。

We will leave you with one of our favorite thoughts from the Reverend Dr. Martin Luther King, Jr. "The arc of the moral universe is long, but it bends towards justice."

我們將為您留下馬丁路德金牧師博士最喜歡的想法之一。“道德宇宙的弧線很長，但它會趨向正義。”

With that, I'd like to thank you for your continued interest and your time today. Operator, please open up the line for questions.

在此，我要感謝您的持續關注和今天的時間。接線員，請開通提問線。

(Operator Instructions) our first question is from Rick Shane with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Rick Shane。

I wanted to start by just looking at the pending maturities within the portfolio. When we look at 2020, you have one sort of normal way transaction that's maturing, which is Quantros, it's carried a little bit below fair value -- or excuse me, a little bit below cost. I'm curious what the path there is. And then as we look into 2021, you've got 3 significant maturities, MedeAnalytics, IRGSE and then 99 Cent Stores (sic) [99 Cents Only Stores]. Those are all carried slightly above cost. I suspect 99 Cents is doing very well. If you could just give us a little insight on the other 3 investments, that would be helpful.

我想先查看投資組合中未決的到期日。當我們展望 2020 年時，有一種正在成熟的正常方式交易，即 Quantros，它的價格略低於公允價值，或者對不起，略低於成本。我很好奇那裡的路是什麼。然後，當我們展望 2021 年時，您將看到 3 個重要的成熟度：MedeAnalytics、IRGSE，然後是 99 美分商店（原文如此）[僅 99 美分商店]。這些價格都略高於成本。我懷疑 99 Cents 做得很好。如果您能為我們提供一些關於其他 3 項投資的見解，那將會很有幫助。

Sure. Rick, good morning. So Quantros is actually in the sales process. It's sold -- Bo, correct me if I'm wrong. It's sold about -- we had a significant pay down. It sold some assets, software and analytics business, sold some assets maybe 1.5 years ago, 2 years ago. They're in the process of selling the rest of the business, but I expect that to be cleared up. IRG is a controlled portfolio company. 99 Cents is doing well, and there shouldn't be significant refi risk. And what was the other one there?

當然。瑞克，早安。所以 Quantros 其實是在銷售過程中。已經賣了——Bo，如果我錯了，請糾正我。它被賣掉了——我們得到了很大的首付。它出售了一些資產、軟體和分析業務，可能在 1.5 年前、2 年前出售了一些資產。他們正在出售其餘業務，但我希望這個問題能得到解決。 IRG 是一家受控投資組合公司。 99 Cents 表現良好，應該不存在重大的再融資風險。那裡的另一件是什麼？

The other one was MedeAnalytics and that has paid off. That business was sold and has since paid off.

另一個是 MedeAnalytics，它已經得到了回報。該業務已出售，並已獲得回報。

Great. Okay. And then that's very helpful because obviously, everybody is sort of asking about maturity default. So that clears that.

偉大的。好的。這非常有幫助，因為顯然，每個人都在詢問到期違約情況。這樣就清楚了。

Rick, just let me -- I want to clarify because I think you're talking -- you're focus on like this tail concept of tail risk in existing portfolios. And I want to clarify one of the things we talked about in our earnings call because the information, the names that we shared earlier included new names in each of the respective periods that the market were less than 98, which had a -- which could have had an impact from OID.

里克，讓我——我想澄清一下，因為我認為你在談論——你關注的是現有投資組合中尾部風險的尾部概念。我想澄清我們在財報電話會議中討論的一件事，因為我們之前分享的資訊和名稱包括市場低於 98 的各個時期的新名稱，這可能會受到 OID 的影響。

So if we booked a new name, it's going to be at OID. The market is going to be less OID. It was included in tail names, even though that probably -- it's not really a tail name. If you exclude the new names that are obviously not tail risk names at quarter end, 8% of our portfolio had a fair market value of less than 98 compared to 4% at Q4 of 2019. The average price of those tail names in Q4 was 95 compared to 85 in this quarter.

因此，如果我們預訂了一個新名稱，它將是 OID。市場上的 OID 將會越來越少。它被包含在尾部名稱中，儘管這可能不是真正的尾部名稱。如果排除季度末明顯不是尾部風險名稱的新名稱，我們投資組合中有8% 的公平市值低於98，而2019 年第四季這一比例為4%。第四季度這些尾部風險名稱的平均價格為95 相比本季的 85。

Got it. Okay. That's helpful. You're right. I was thinking a little bit about tail risk. The other investment I'd like to just talk about is Biohaven, which I think is a sort of a different investment for you. If we look, that's a company that is consistently losing money, seems to be burning cash. I realize your portion of that facility is relatively small. But just like to talk a little bit about what's driving what appears to be a different type of investment in that particular company?

知道了。好的。這很有幫助。你說得對。我在思考一下尾部風險。我想談的另一項投資是 Biohaven，我認為這對你來說是一種不同的投資。如果我們看一下，那是一家持續虧損的公司，似乎在燒錢。我知道你們在該設施中所佔的份額相對較小。但想談談是什麼推動了對該特定公司的不同類型的投資？

It's actually not -- it's the same exact investments that we had in Ironwood and Nektar. So those were large biotech companies who had an in-place IP and drugs that had sales, and then they were investing in R&D to expand the portfolio. And so if you look at the exist -- if you had looked -- if you kind of parse out the business and said, their existing drug portfolio that has revenues that has in-place IP and you look at that and you looked at the DCF of the value of that in-place IP, it significantly covers our loan. And so it's exactly the same theme as Ironwood and Nektar, who both paid off and were good investments for us.

實際上不是——這與我們在 Ironwood 和 Nektar 的投資完全相同。這些都是大型生技公司，擁有現有的智慧財產權和有銷售的藥品，然後他們投資研發來擴大產品組合。因此，如果你看看現有的——如果你曾經看過——如果你分析一下業務並說，他們現有的藥物組合有收入，有知識產權，你看看這個，你看看該就地知識產權價值的DCF，很大程度上涵蓋了我們的貸款。因此，這與 Ironwood 和 Nektar 的主題完全相同，他們都獲得了回報，對我們來說是很好的投資。

So the -- there's kind of a couple of different types of bio businesses, one biotech business, one set of biotech businesses that have no in-place revenues, no cash flows, all kind of on the come, those don't have a credit story. Then there are biotech companies who have a drugs or portfolio of drugs, but they're massively reinvesting in new drugs. And when you parse out, there is an underlying credit story either based on royalties or the value of IP from in-place drugs that are providing revenue. And so Biohaven actually has the market-leading migraine drug or one of the market-leading migraine drugs.

因此，有幾種不同類型的生物企業，一種生技企業，一組沒有固定收入、沒有現金流的生技企業，所有這些都即將到來，這些企業沒有信用故事。還有一些生技公司擁有一種藥物或藥物組合，但他們正在對新藥進行大規模再投資。當你解析時，有一個潛在的信用故事，要么基於特許權使用費，要么基於提供收入的現有藥物的知識產權價值。因此，Biohaven 實際上擁有市場領先的偏頭痛藥物或市場領先的偏頭痛藥物之一。

Got it. I think, in the current environment, exposure to migraine relief is probably a good place to be. Thanks for the context.

知道了。我認為，在當前環境下，緩解偏頭痛可能是個不錯的選擇。謝謝你的背景。

I mean I think Ironwood was like IBS and constipation medication or so -- or I think the Ironwood. So that could have been applicable, too.

我的意思是，我認為鐵木就像腸躁症和便秘藥物之類的東西——或者我認為鐵木。所以這也可能適用。

Our next question comes from Devin Ryan with JMP Securities.

我們的下一個問題來自 JMP 證券的 Devin Ryan。

Maybe start here with a bigger picture question since it's on top of everyone's mind. I'd love to maybe just get a little perspective around how you guys are thinking about a scenario to the extent we do have a Biden White House, but a Red Senate, so we probably don't see tax legislation change, probably less stimulus. And related to that, you mentioned the pickup in deal flow over the past couple of months. I think that's consistent with the broader M&A markets. But if credit and equity markets remain reasonable in either, call it, political outcome that could happen here, do you see anything that could change kind of the strong momentum in new deal flow?

也許可以從一個更大的問題開始，因為這是每個人都關心的問題。我很想了解你們如何考慮這樣一種情況：我們確實有拜登白宮，但有紅色參議院，所以我們可能不會看到稅收立法發生變化，刺激措施可能會減少。與此相關的是，您提到了過去幾個月交易流的回升。我認為這與更廣泛的併購市場是一致的。但如果信貸和股票市場保持合理，所謂的政治結果可能在這裡發生，你認為有什麼可能改變新交易流的強勁勢頭嗎？

No. Look, I think you're right, which is -- I'm not -- by the way, I'm not -- I think both sides want to get some type of stimulus done, which I think is net positive for markets, including credit markets. I do think significant undoing of the Trump tax reform is probably off the table or specific stimulus into Blue States, it's probably off the table. We saw that, obviously, in some of the New York REIT stocks yesterday that were significantly down.

不，聽著，我認為你是對的，這是——我不是——順便說一句，我不是——我認為雙方都希望採取某種類型的刺激措施，我認為這是淨積極的對於市場，包括信貸市場。我確實認為，對川普稅收改革的重大廢除可能是不可能的，或者對藍州的具體刺激措施，也可能是不可能的。顯然，我們昨天在一些紐約房地產投資信託基金股票中看到了這一點，這些股票大幅下跌。

The -- but on the corporate credit side, keeping corporate tax rates as is, is probably positive for credit and positive for valuations. And so I think putting personal politics aside, the markets like, I think, like the outcome of or at least yesterday and today on premarket, like the outcome of stability in knowing what the rules are, stability on knowing what corporate tax rates are and my guess is that there will be some type of stimulus both sides of table.

但在企業信貸方面，維持企業稅率不變可能有利於信貸和估值。因此，我認為，拋開個人政治不談，我認為，市場就像是至少昨天和今天在盤前的結果，就像了解規則的穩定性、了解公司稅率的穩定性以及我的猜測是桌子兩邊都會有某種類型的刺激。

Okay. Terrific. And maybe just a follow-up here. So PIK income is obviously somewhere we've been focused, and your PIK income as a percentage of total investment income is very low at 3.2%. And so I'm just curious, if that's just a function of some of the portfolio positioning that you've spoken about, just the health of the portfolio? Or is there something else going on there as we think about moving forward?

好的。了不起。也許只是這裡的後續行動。所以PIK收入顯然是我們一直在關注的地方，而你的PIK收入佔總投資收入的百分比非常低，只有3.2%。所以我很好奇，這是否只是您所說的一些投資組合定位的函數，只是投資組合健康狀況的函數？或者當我們考慮前進時還有其他事情發生嗎？

Yes. So I think, first of all, PIK income, I think on a notional basis, Ian, correct me if I'm wrong, was only up like $100,000 quarter-over-quarter.

是的。所以我認為，首先，PIK 收入，我認為，從名義上看，Ian，如果我錯了，請糾正我，季度環比僅增長了 100,000 美元左右。

That's right, Josh.

是的，喬許。

And that was a function of, I think, 2 new names in that PIK component, Biohaven and Forescout and a full quarter of PIK income on ServiceChannel, Sprinklr with relatively small positions. And those were not -- none of that was related to restructuring. So those were related to investment choices we made.

我認為，這是 PIK 元件中的兩個新名字 Biohaven 和 Forescout 以及 ServiceChannel Sprinklr 上 PIK 收入的整整四分之一的函數，其頭寸相對較小。這些都不是——這些都與重組無關。所以這些與我們所做的投資選擇有關。

The activity level on amendments were significantly down quarter-over-quarter. And so -- and I don't think there was any amendments the last quarter that had put -- that had -- where we added PIK income. And so I think that's a function of where we position the portfolio pre-COVID, where in the capital structure and, quite frankly, on a sector basis, I think as we mentioned in our earnings script, really, we report our industry exposure by end markets served.

修正案的活動水準較上月顯著下降。因此，我認為上個季度沒有任何修改增加了 PIK 收入。因此，我認為這取決於我們在新冠疫情爆發之前對投資組合的定位，在資本結構中的位置，坦率地說，在部門的基礎上，我認為正如我們在收益腳本中提到的那樣，實際上，我們透過以下方式報告了我們的行業風險敞口：服務的終端市場。

But really, when you look at our portfolio, I think 75% of our portfolio is tech-enabled business service-as-a-software, which have very significant revenues and decently variable cost structure. And so people have been able to kind of live through the volatility given the nature of the structure of the businesses that we chose to finance.

但實際上，當你查看我們的產品組合時，我認為我們的產品組合中有 75% 是技術支援的商業服務即軟體，它們具有非常可觀的收入和相當可變的成本結構。因此，考慮到我們選擇融資的企業結構的性質，人們已經能夠承受波動。

Our next question is from Robert Dodd with Raymond James.

我們的下一個問題來自羅伯特·多德和雷蒙德·詹姆斯。

Josh, during -- I think this is actually Bo, you mentioned notable increase in sponsor activity at the end of Q3 and Q4, I mean, that's consistent with what we've been hearing. But at the same time, I mean, obviously, Biohaven, Designer Brands, Centric, those are the more niche asset by really good credit security, very high IRRs, which we can obviously see with Centric Brands, this has already been realized. What will -- the sponsor type business tends to be a lower IRR, maybe longer-lived asset, but then the ABL stuff, higher IRR shorter lived asset.

喬什，我認為這實際上是博，您提到第三季度和第四季度末贊助商活動顯著增加，我的意思是，這與我們所聽到的一致。但同時，我的意思是，很明顯，Biohaven、Designer Brands、Centric，這些都是更利基的資產，具有良好的信用安全、非常高的IRR，我們可以在Centric Brands 上明顯看到這一點，這已經實現了。贊助商類型的業務往往是較低的 IRR，也許是壽命較長的資產，但 ABL 的東西，是較高 IRR 的較短壽命的資產。

Looking forward, tough question, what do you -- what areas do you expect to see and I'm not just talking about Q4, talking about 2021, et cetera, do you expect to see the most capital deployed into? Is the market shifting right now from what was more ABL during the tougher periods to maybe more sponsored in '21? Or can you give us any thoughts on that?

展望未來，這是一個棘手的問題，您希望看到哪些領域，我不只是談論第四季度，還談論 2021 年等等，您希望看到最多的資本部署到哪些領域？現在的市場是否正在從困難時期的 ABL 轉向 21 年可能更多的贊助？或者您能給我們一些想法嗎？

Yes. So it's a great, great question. I'm not sure I'm going to have a greatest answer. How we've set up our business model is really to focus on multiple channels and in investments in industries that we like the -- in investments perhaps in industries that we like that we think have good credit characteristics, i.e., that the -- because you don't -- even in the sponsor business, even when they might be longer weighted average life, you don't really own a right tail. Like you don't -- you're not going to make 4 or 5x your money. And so you got to figure out, you got to spend your time and truncate the left tail.

是的。所以這是一個非常非常好的問題。我不確定我是否會得到最好的答案。我們如何建立我們的商業模式實際上是專注於多種管道和對我們喜歡的行業的投資——也許是對我們喜歡的行業的投資，我們認為這些行業具有良好的信用特徵，即——因為你不知道——即使在贊助商行業，即使他們的加權平均壽命可能更長，你也不真正擁有右尾。就像你不這樣做一樣——你不會賺到 4 或 5 倍的錢。所以你必須弄清楚，你必須花時間截斷左尾。

And so that's -- when we think about our business, we think about looking for and prospecting for a deal that has a return profile that doesn't have a left tail. And so that's both -- and then we've set up our business where we're kind of agnostic towards channels. And so we're agnostic towards sponsored channel and nonsponsored channel, stressed rescue financing healthy businesses as long as that distribution is consistent and acceptable and, on occasion, we might take some probability of loss but you got to have -- really have a higher expected MOM.

所以，當我們考慮我們的業務時，我們會考慮尋找和探索回報率不存在左尾的交易。所以，兩者都是——然後我們就建立了我們對通路不可知的業務。因此，我們對贊助管道和非贊助管道持不可知論，強調救援融資健康的企業，只要分配一致且可接受，有時，我們可能會承擔一定的損失概率，但你必須擁有——確實有更高的損失期待媽媽。

And so I don't have a -- I would have thought if you would have said in March or April, where was all of our activity going to be? I would have said, all of our activity is going to be in rescue financings. And I think that, quite frankly, was offset by a ton of stimulus and the Fed either kind of threatening or actually participating in credit markets.

所以我沒有——我會想如果你在三月或四月說，我們所有的活動將在哪裡？我想說，我們所有的活動都將用於救援融資。坦白說，我認為這一點被大量刺激措施和聯準會威脅或實際參與信貸市場所抵消。

And so hopefully, how we have our business set up is we don't have to -- we're not levered to any one channel. And so because if we -- obviously, the world has changed and changes pretty quickly. On the margin, I think that there are going to be more tail risk industries out there, obviously, real estate is one, we'll probably not do any real estate in the BDC because we do corporate lending, but that's an example one.

因此，希望我們的業務建立方式是我們不必這樣做的——我們不會利用任何一種管道。因為如果我們——顯然，世界已經發生了變化，而且變化得很快。在邊際上，我認為將會有更多的尾部風險行業，顯然，房地產就是其中之一，我們可能不會在 BDC 做任何房地產，因為我們做企業貸款，但這只是一個例子。

Retail, I think, is -- continues to be in a world of hurt. And we probably can smartly deploy some capital there and continuing to do some asset-based stuff where companies have broken balance sheets through carving out specific assets, either through inventories or receivables. So I think that will continue to be an opportunity. But I also think that the regular way sponsor finance in our industries that we like will also continue to be an opportunity.

我認為，零售業仍然處於受傷的世界。我們或許可以巧妙地在那裡部署一些資本，並繼續做一些基於資產的事情，公司透過庫存或應收帳款等特定資產來打破資產負債表。所以我認為這將繼續是一個機會。但我也認為，在我們喜歡的行業中以常規方式贊助融資也將繼續是一個機會。

So I know I didn't answer your question. I guess the answer is we don't know we're set up to cover, works as a platform and a $47 billion asset manager in the credit space, we're kind of set up to capitalize on wherever it comes from.

所以我知道我沒有回答你的問題。我想答案是我們不知道我們的目的是作為信貸領域的一個平台和 470 億美元的資產管理公司，我們的目的是利用它的來源。

Bo or Fishy, do you have anything to add? And by the way, Fishy continues to be an active participant in business, so we make them join these calls. Bo and Fishy, do you have anything to add?

Bo或Fishy，你們還有什麼要補充的嗎？順便說一句，Fishy 仍然是業務的積極參與者，因此我們讓他們加入這些電話會議。 Bo和Fishy，你們還有什麼要補充的嗎？

No. I mean, listen, you're 100% right, Josh, the thematic approach in omni-channel approach allows us to be active when each of those channels have muted activity like we saw in Q2 and early Q3 in the sponsor M&A transactions. We saw that activity picked up, the natural arc of gestation periods of deals means that you start seeing that activity really come through in like Q3 in the pipeline in Q4, which we see, that was really pent up, and there's a lot of pent-up demand for M&A given where asset prices are right now.

不，我的意思是，聽著，你說得100% 正確，喬什，全渠道方法中的主題方法使我們能夠在每個渠道的活動平靜時保持活躍，就像我們在第二季度和第三季初在贊助商併購交易中看到的那樣。我們看到活動有所回升，交易醞釀期的自然弧意味著你開始看到活動真正在第四季度的管道中像第三季度那樣完成，我們看到，這確實被壓抑了，而且有很多被壓抑的鑑於目前的資產價格，併購需求上升。

So it's a very active environment. I think you're hearing that across the industry. I would expect, and this would just be a guess that you would continue to see kind of normal levels of M&A going forward without some sort of dislocation, but we're also seeing a lot of opportunities across our other direct-to-company, retail ABL, so the pipeline feels very balanced right now.

所以這是一個非常活躍的環境。我想你在整個行業都聽到了這樣的說法。我預計，這只是一個猜測，您將繼續看到正常水平的併購，不會出現某種混亂，但我們也看到了我們其他直接面向公司的許多機會，零售 ABL，所以目前的通路感覺非常平衡。

Yes. I'll just add. I mean, I think a lot of what we do are core software business services. We did see a pretty good snapback in the last few months as far as activity goes. And yes, I expect that to carry into next year. So that should continue along with what everybody else mentioned, retail ABL, asset-based restructurings and the like.

是的。我就補充一下。我的意思是，我認為我們所做的很多事情都是核心軟體業務服務。就活動而言，過去幾個月我們確實看到了相當不錯的反彈。是的，我希望這種情況能延續到明年。因此，這應該與其他人提到的零售 ABL、基於資產的重組等一起繼續。

I appreciate that. And I really appreciate that. I basically asked a crystal ball question, but I appreciate the color. Just I kind of follow-up. On the M&A activity and the sponsor activity, I mean can you give us just a quick view on how pricing is? I mean, I presume spread widening largely are back-weighted it seems. But documentation, et cetera. Can you give us any quick comments there?

我很感激。我真的很感激。我基本上問了一個水晶球問題，但我很欣賞它的顏色。只是我的跟進。關於併購活動和贊助活動，我的意思是可以簡單介紹一下定價狀況給我們嗎？我的意思是，我認為利差擴大在很大程度上似乎是反向加權的。但是文件等等。您能給我們一些快速評論嗎？

Yes. Like I'll quickly step in there. I think compared to pre-COVID, you're still seeing levels -- leverage levels down modestly, better documentation than you were seeing pre-COVID. From a pricing standpoint, there's probably still a premium to pre-COVID but that is -- it's definitely getting competitive, and that is starting to tighten up.

是的。就像我會很快介入那裡一樣。我認為與新冠疫情之前相比，你仍然看到槓桿水平適度下降，文件比新冠疫情之前更好。從定價的角度來看，與新冠疫情之前相比，可能仍然存在溢價，但它肯定會變得更具競爭力，而且這種競爭正在開始加劇。

Our next question is from Finian O'Shea with Wells Fargo Securities.

我們的下一個問題來自富國銀行證券公司的 Finian O'Shea。

Just one question on the -- for sort of Joshua, Ian on the LIBOR swaps, that's -- it was interesting color on the reversal coming up and the gains you've had and obviously, was a patient strategy to have had in place going into the recession before that LIBOR was going down but where things are now, as these unsecureds roll off soon, assuming you all replace those soon, would you still execute that same strategy or structure? Would you still swap to LIBOR given it's essentially 0? Any color on that, that would change going forward?

只是一個關於約書亞（Joshua）、伊恩（Ian）關於倫敦銀行間同業拆借利率（LIBOR）掉期的問題，那就是，即將到來的逆轉和你所獲得的收益是有趣的顏色，顯然，這是一種耐心的策略在倫敦銀行間同業拆借利率（LIBOR）下降之前就陷入了經濟衰退，但現在的情況是，隨著這些無擔保證券很快就會消失，假設你們很快就會更換這些無擔保證券，你們還會執行相同的策略或結構嗎？鑑於 LIBOR 基本上為 0，您還會換成 LIBOR 嗎？任何顏色，未來會改變嗎？

Yes. Look, look, our belief -- our fundamental belief is that we have the ability to underwrite, manage and pick credit risk and manufacture strong credit risk premium. We don't really have the ability to figure out the macro. And so LIBOR, as you say, LIBOR is closest to the pin to 0.

是的。看，看，我們的信念——我們的基本信念是我們有能力承保、管理和挑選信用風險，並製造強勁的信用風險溢價。我們確實沒有能力弄清楚宏觀。所以 LIBOR，正如你所說，LIBOR 最接近 0。

That being said, there's arguably negative real rates right now. And there's negative nominal rates in Europe. So like don't -- I don't -- you should not think about LIBOR as a -- I would not think about LIBOR as a floor. Now I'm not calling for negative rates. But you shouldn't think as 0 is an absolute floor. Zero is a number just like negative 30 is a number.

話雖如此，目前可以說實際利率為負。歐洲的名目利率為負。所以，就像不要——我不——你不應該將倫敦銀行同業拆借利率（LIBOR）視為——我不會將倫敦銀行同業拆借利率（LIBOR）視為下限。現在我不呼籲實施負利率。但你不應該認為 0 是絕對下限。零是一個數字，就像負數 30 是一個數字一樣。

So I would say we will continue to have -- we'll look at it when we make that call, but we'll continue to have a bias where we think can -- we think we do some things well and have a skill set and we continue -- and we do some things not well or don't have the -- we might do well, we don't think we have the skill set to do that well, which is the macro. And so to us, it's a little akin to us, would you stop hedging your foreign currency exposure by borrowing in local currency? And so the answer is independent of where you think there's going to be a reversion to mean or independent of what you think currency swap rates are, cross-currency swap rates are, we probably wouldn't do so just because we don't have that skill set.

所以我想說，我們將繼續——當我們做出決定時我們會考慮這一點，但我們將繼續在我們認為可以的地方持有偏見——我們認為我們做得很好並且擁有一套技能我們繼續——我們做了一些做得不好或沒有的事情——我們可能會做得很好，但我們認為我們不具備做好這件事的技能，這就是宏觀。所以對我們來說，這有點類似我們，你會停止借入當地貨幣來對沖你的外幣風險嗎？因此，答案與您認為的意思回歸無關，或者與您認為的貨幣掉期利率、跨貨幣掉期利率無關，我們可能不會這樣做，因為我們沒有該技能集。

So I would expect -- we haven't talked about it for a while, but I would expect that our general North Star remains unchanged and I would -- our LIBOR, our swaps just to be clear, unlike our bank deal does not have floors. And so if LIBOR does go negative, our cost of funding is going to go down on our notes, whether it's existing swap. There's a floor of 0 on our bank revolver, but in our -- there's no 0 floor.

所以我預計——我們已經有一段時間沒有談論它了，但我預計我們的總體北極星保持不變，而且我會——我們的倫敦銀行同業拆借利率（LIBOR）、我們的互換只是為了明確，不像我們的銀行交易沒有地板。因此，如果 LIBOR 確實變成負數，我們的票據融資成本將會下降，無論是現有的互換。我們的銀行左輪手槍上有 0 下限，但在我們的 - 中沒有 0 下限。

Ian, do you have anything to add?

伊恩，你還有什麼要補充的嗎？

No. I think, Fin, you actually understand the concept anyway because on day 1, when we enter into a swap, the NPV is 0. So then I'll just revert back to the comments that Josh made about where our skill set lies beyond that in terms of forecasting on a macro basis.

不。我想，Fin，無論如何你實際上理解了這個概念，因為在第一天，當我們進行交換時，NPV 是 0。所以我會回到 Josh 對我們的技能組合所在的評論超出了宏觀預測的範圍。

Yes. No, I appreciate it. Actually, one more question popped up.

是的。不，我很感激。事實上，又出現了一個問題。

If then, the one -- I know you get this one thing just for other people who might be listening, that there's a significant correlation between when rates go down, that there's a kind of economic uncertainty, right? Because as a policy manager, as a policy matter, people are using -- use rates and monetary policy as a form of stimulus.

如果那麼，我知道您只是為其他可能正在傾聽的人了解這一點，即利率下降之間存在顯著的相關性，存在一種經濟不確定性，對吧？因為作為政策管理者，作為政策問題，人們正在使用利率和貨幣政策作為刺激形式。

And so the -- and right now, we basically have, on our asset side, we have basically a fixed rate of return given our LIBOR floors. And so in environments where there is a ton of uncertainty and policymakers are pushing rates down, we probably have credit losses.

因此，現在，在我們的資產方面，考慮到我們的 LIBOR 下限，我們基本上有一個固定的回報率。因此，在存在大量不確定性且政策制定者壓低利率的環境中，我們可能會遭受信貸損失。

And so we like the benefit in that environment from the net interest margin [expansion] (corrected by company after the call), which we've massively -- which we've actually massively has helped us by 100 basis points [year-to-date] (added by company after the call) or 110 basis points projected through next quarter. And so what we do give up is we give up in massive risk on environments, and we give up some ROE expansion if we have a whole bunch of fixed rate debt.

因此，我們喜歡在這種環境下從淨息差[擴張]（在電話會議後由公司修正）中獲得的好處，我們已經極大地幫助了我們[今年到今年 100 個基點] -日期]（由公司在電話會議後新增）或預計到下個季度的110 個基點。因此，我們確實放棄的是環境的巨大風險，如果我們有一大堆固定利率債務，我們就會放棄一些股本報酬率的擴張。

The other thing I would say, the last thing I'll say on the subject is, another theme is like, is that our dividend is -- could be argued, excluding the environment we live in today, which is expecting some credit losses, as safer today than it was a year ago, so because of the net interest margin expansion. And so I think that is one. We have more net interest margin than we've had historically, which is protect -- which actually provides safety for our dividend and safety for the -- for future credit losses.

我要說的另一件事，關於這個主題我要說的最後一件事是，另一個主題是，我們的股息是——可以爭論，不包括我們今天生活的環境，預計會出現一些信貸損失，今天比一年前更安全，因為淨利差擴大了。所以我認為這是其中之一。我們擁有比歷史上更多的淨利差，這實際上為我們的股息提供了安全性，也為未來的信貸損失提供了安全性。

Sure. And on spillover, I know you've paid out the $0.50, and I think, first quarter, your undistributed NII is already above where it was before that. Are we looking at another -- are we looking at another special, special, as you may call it, or extra?

當然。至於外溢效應，我知道您已經支付了 0.50 美元，而且我認為，第一季度，您未分配的 NII 已經高於之前的水平。我們是否正在考慮另一個——我們是否正在考慮另一個特別的，特別的，正如你所說的，或者額外的？

Yes. So it's kind of -- I'll let Ian answer the second piece. It's had a little bit of a bummer, right? We did that -- we've tried to avoid doing large specials when we put in the recurring, supplemental dividend framework 2, 2.5 years ago. And then given that the level was set at only at $0.50, we ended up having friction costs and kind of growing the spillover income and growing, unfortunately, on a per share basis, the excise tax. And so we wanted to clean it out. I think we're basically back to pre-clean out. Is that right, Ian?

是的。所以這有點——我會讓伊恩回答第二個問題。這有點令人沮喪，對吧？我們就是這樣做的——2、2.5年前，當我們引入經常性補充股息框架時，我們試圖避免進行大規模特價。然後，鑑於該水準僅設定為 0.50 美元，我們最終產生了摩擦成本，並且溢出收入有所增加，不幸的是，每股消費稅也有所增加。所以我們想把它清理掉。我認為我們基本上回到了預清理狀態。是這樣嗎，伊恩？

Yes. At the beginning of this year, when we went to the Board with the proposal, we were at $1.61 per share of undistributed income. And at the end of Q3, we're at $1.55. So we're pretty much back there.

是的。今年年初，當我們向董事會提出提案時，每股未分配收入為 1.61 美元。在第三季末，我們的價格為 1.55 美元。所以我們幾乎回到了那裡。

And so as a -- I think we'll look at, Ian, correct me if I'm wrong, the plan is to look at where we sit on a tax basis and look at the 90% rule and look at how much of excise tax is a drag on earnings? And we'll go through the same work we did at the end of the year, at the end of this year.

因此，我想我們會看看，伊恩，如果我錯了，請糾正我，計劃是看看我們在稅收基礎上的位置，看看 90% 的規則，看看有多少消費稅會拖累盈利嗎？我們將在今年年底完成與今年年底相同的工作。

Congrats on the quarter.

恭喜本季。

Great. Thanks, Fin. Hope you and your family are safe.

偉大的。謝謝，芬。希望您和您的家人安全。

Our last question is from Ryan Lynch with KBW.

我們的最後一個問題來自 KBW 的 Ryan Lynch。

A lot of BDCs have talked about really positioning their portfolio late cycle over the last several years, but not all BDCs' portfolios have really held up as well as yours has so far. And I know there's -- you mentioned there's still a lot of credit risk in your portfolio, and we're still in the midst of a downturn. But so far, you guys have grown book value meaningfully in 2020 in the midst of this downturn and have had actually one of your best ROE, net income ROE generation years that you guys have had in the midst of this downturn. So I'm just curious, are you guys surprised how well your portfolio has held up in the midst of this downturn and how much value you guys have been able to create?

在過去的幾年裡，許多 BDC 都談到真正將其投資組合定位在周期後期，但到目前為止，並非所有 BDC 的投資組合都真正像您的投資組合那樣穩定。我知道，您提到您的投資組合中仍然存在許多信用風險，而且我們仍處於低迷時期。但到目前為止，你們在 2020 年的帳面價值在經濟低迷時期實現了有意義的成長，並且實際上是你們在經濟低迷時期擁有的最佳 ROE、淨利潤 ROE 生成年份之一。所以我很好奇，你們是否對你們的投資組合在經濟低迷時期的表現以及你們能夠創造多少價值感到驚訝？

Yes. I wouldn't -- look, hindsight is always 20/20. So I think we feel very good about where we are today in the portfolio today. I'm a little bummed that in the midst of -- and again, hindsight is 20/20 and I've had these conversations with people a little bummed that we turned off our stock.

是的。我不會－－看，事後諸葛亮總是20/20。因此，我認為我們對今天的投資組合狀況感到非常滿意。我有點沮喪，事後看來，現在是 20/20，我和人們進行了​​這些對話，他們對我們關閉庫存感到有點沮喪。

We didn't buy enough bonds back in those moments, a little bummed that we didn't buy back, we turned off our stock buyback program in middle of March to protect liquidity. I'm a little bummed that we created, quite frankly, a whole bunch of value in Q2 and Q3 by being a little bit active. There was probably more opportunity to be had there. But uncertainty was very high. And so I don't give us a path. Look, 20/20 hindsight I'm a little bummed. So I feel very good about what we were able to accomplish and how we protected the balance sheet.

當時我們沒有回購足夠的債券，對我們沒有回購感到有點遺憾，我們在三月中旬關閉了股票回購計畫以保護流動性。坦白說，我們透過稍微活躍一點，在第二季和第三季創造了一大堆價值，這讓我有點沮喪。那裡可能有更多的機會。但不確定性非常高。所以我不給我們一條路。聽著，20/20 事後看來，我有點沮喪。因此，我對我們能夠取得的成就以及我們如何保護資產負債表感到非常滿意。

And -- but that all started with, I think, protecting the balance sheet and it was only a decision of what assets we chose to finance. It was -- because there were some of our peers who had financed similar assets, but they were -- they got back and then doing unnatural things because they didn't reserve for unfunded commitments, they didn't think about drawdowns and net asset value during times of volatility and what that meant for offense.

而且，我認為，這一切都是從保護資產負債表開始的，這只是我們選擇融資哪些資產的決定。這是因為我們的一些同行為類似的資產提供了融資，但他們回來後做了不自然的事情，因為他們沒有為無資金支持的承諾預留資金，他們沒有考慮回撤和淨資產波動時期的價值以及這對進攻意味著什麼。

And so I think it's a combination of -- the ROEs this period are a combination of assets we picked to finance and position the left-hand side of the balance sheet, but it's also how we position the right-hand side of the balance sheet to be able to make the business at minimum, robust, but possibly antifragile, where we were able to attack opportunities during times of volatility, which we've always talked about.

因此，我認為這是一個組合——這一時期的淨資產收益率是我們選擇用於融資和定位資產負債表左側的資產的組合，但這也是我們定位資產負債表右側的方式能夠使業務保持最低限度、穩健，但可能具有反脆弱性，這樣我們就能夠在波動時期抓住機會，這是我們一直在談論的。

And so am I a little surprised? Yes. But I think it's what we thought about and how we thought about the business. And quite frankly, I thought a lot of the disciplines we put into our framework ahead of the crisis allowed us to capitalize a little bit in hindsight at which we would have capitalized more.

我是不是有點驚訝？是的。但我認為這就是我們的想法以及我們對業務的看法。坦白說，我認為我們在危機發生前納入框架的許多規則使我們能夠在事後利用一些資本，而事後我們本可以利用更多資本。

Ian, Bo or Fishy, anything?

Ian、Bo 或 Fishy，什麼？

No, I think that's right.

不，我認為這是對的。

Agree.

同意。

Okay. Yes. We're well done. You mentioned in some of your earlier comments, prepared remarks, some of the secondary opportunities that you guys had and the value you created in the second and third quarter. Looking into the fourth quarter, are there still any opportunities in those markets at all? Or given the kind of run-up in prices, is that kind of market kind of gone away at this point?

好的。是的。我們做得很好。您在之前的一些評論中提到，準備好的評論，你們擁有的一些次要機會以及你們在第二季和第三季創造的價值。展望第四季度，這些市場還有機會嗎？或者考慮到價格的上漲，這種市場現在是否已經消失了？

It feels like it's gone away. I mean things are not obvious. So for example, the structured credit market is not as obvious to us. On an opportunistic basis, I think there's still value to be had there. But given that it's kind of not -- I won't say outside the lane, but it's an adjacency. It's -- there's -- it's not that screaming value that we're going to kind of go out of our lane.

感覺就像消失了一樣。我的意思是事情並不明顯。例如，結構化信貸市場對我們來說並不那麼明顯。從機會主義的角度來看，我認為那裡仍然有價值。但考慮到它不是——我不會說在球道之外，但它是一個鄰接點。這並不是我們要走出我們的軌道的那種令人尖叫的價值。

I would say, I think there's opportunities in regular way direct lending. That we think is interesting. But we are positioning, look, the path of COVID is highly uncertain. And we are -- I think we are continuing to position our balance sheet to not saying that there's going to be more volatility to come, but if there's more volatility to come, both from how much capital we have and how much liquidity to have to be positioned to lean into that volatility if it does come. And so I'm -- our balance sheet was I think pretty well in position, pre-COVID, it's actually in better position today given we have more capital. We have -- debt-to-equity is lower. We have basically the same amount of liquidity. Ian?

我想說的是，我認為定期直接貸款是有機會的。我們認為這很有趣。但我們的定位是，看，新冠病毒的發展路徑是高度不確定的。我認為我們將繼續調整我們的資產負債表，並不是說未來將會出現更多的波動，但如果未來出現更多的波動，無論是我們擁有多少資本，還是必須有多少流動性如果這種波動確實發生的話，我們應該做好準備來應對這種波動。所以我認為，在新冠疫情爆發之前，我們的資產負債表狀況非常好，考慮到我們擁有更多的資本，今天的狀況實際上更好。我們的負債股本比較低。我們的流動資金量基本上相同。伊恩？

No, I think you captured all of it, Josh.

不，我想你已經捕捉到了這一切，喬許。

Okay. And then I just had one more. I think earlier, you were talking about -- Robert was asking about the kind of terms and structures on sponsored deals. I think you said they were maybe modestly better from leverage levels or documentation and maybe a little bit better on pricing, but maybe that's coming down.

好的。然後我又喝了一份。我想早些時候，你正在談論 - 羅伯特正在詢問贊助交易的條款和結構。我想你說過，從槓桿水平或文件來看，它們可能會稍微好一些，在定價方面可能會好一些，但也許這種情況正在下降。

Just curious your thoughts on even if terms, documents, structures haven't materially improved since where they were maybe pre-COVID, would you still consider a new investment today versus a year or 2 ago, potentially a better risk-adjusted opportunity just because if you're making an investment into a new portfolio of companies, today, you're at such an information advantage versus where you were a year or 2 ago because you'd have this -- recency you have seen how this particular businesses is performing during a very severe downturn. So while the terms and structures may not have improved significantly, the risk-adjusted return is better because of the information advantage you potentially have?

只是好奇你的想法，即使條款、文件、結構自新冠疫情爆發前以來沒有實質性改善，與一兩年前相比，你今天是否仍然會考慮進行新的投資，這可能是一個更好的風險調整機會，因為如果你今天對一個新的公司投資組合進行投資，那麼與一兩年前相比，你將擁有這樣的資訊優勢，因為你最近會看到這個特定業務的情況在非常嚴重的經濟衰退期間表現出色。因此，雖然條款和結構可能沒有顯著改善，但由於您潛在擁有的資訊優勢，風險調整後的回報會更好？

Yes. So I think that's a very valid framework and a very valid argument. I think it all comes down to the underlying idiosyncratic credit. And then I don't think that you can underestimate the volatility in both our portfolios and how businesses performed was most definitely muted by the significant stimulus. And so you kind of got a window but -- into how things performed, which I think most definitely is an informational advantage and which is helpful in your underwriting.

是的。所以我認為這是一個非常有效的框架和一個非常有效的論點。我認為這一切都歸結於潛在的特殊信用。然後，我認為您不能低估我們投資組合的波動性，而重大刺激措施肯定會削弱企業的表現。所以你有點了解事情的表現，我認為這絕對是一種資訊優勢，這對你的核保很有幫助。

That being said, you had a whole bunch of stimulus through PPP loans or through just broad-based stimulus that you really -- that tide kind of went out and then kind of got stopped. If that makes sense? But I think your framework is a valid framework, which is, yes, like you get to see how cost structures behaved, how management behaved, how sticky were the revenues in the backdrop of COVID? And then I would say, plus at the backdrop of stimulus.

話雖這麼說，你透過購買力平價貸款或透過廣泛的基礎刺激獲得了一大堆刺激，這種浪潮有點退去，然後又停止了。如果這有道理嗎？但我認為你的框架是一個有效的框架，是的，就像你可以看到成本結構如何表現、管理層如何表現、收入在新冠疫情背景下的黏性如何？然後我想說，加上刺激的背景。

Yes. Yes. So I guess a couple of different factors there, with the government coming in and talking about stimulus.

是的。是的。所以我猜想有幾個不同的因素，政府介入並談論刺激措施。

And this concludes our Q&A session. I would like to turn the call back to Joshua Easterly for his final remarks.

我們的問答環節到此結束。我想把電話轉回約書亞‧伊斯特利，聽他最後的發言。

Great. We have a little bit of a history of wishing people happy holidays and the Thanksgiving is coming up. And so what I would say to people is, I think one of the silver linings of COVID is, people, for better or worse, got to spend a lot of time with their family. For me, it's been, quite frankly, amazing.

偉大的。我們有一段祝福人們節日快樂的歷史，而感恩節即將到來。所以我想對人們說的是，我認為新冠疫情的一線希望之一是，人們，無論好壞，都必須花很多時間與家人在一起。對我來說，坦白說，這真是太棒了。

And so hopefully, people take the time given all the strife in the world and on Thanksgiving and really take the time and appreciate the things they have and figure out how to make the world a better place. Thank you.

因此，希望人們在感恩節這個世界上發生的所有衝突中花時間，真正花時間欣賞他們所擁有的東西，並找出如何讓世界變得更美好的方法。謝謝。

Thank you, ladies and gentlemen. This concludes today's program. You may now disconnect. Have a wonderful day.

謝謝你們，女士們、先生們。今天的節目到此結束。您現在可以斷開連線。祝你有美好的一天。