1 unchanged sentence
We are subject to financial market risks, including changes in interest rates.
−Removed: During the fiscal year ended December 31, 2019, certain of
−Removed: the investments in our comprehensive investment portfolio had floating interest rates.
−Removed: These floating rate investments were primarily based on floating LIBOR and typically have durations of one to three months after which they reset to current
−Removed: market interest rates.
+Added: In addition, U.S.
+Added: and global capital markets and credit markets
+Added: have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities
+Added: that we hold.
+Added: Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow.
+Added: As a result, there can be no assurance that a
+Added: significant change in market interest rates will not have a material adverse effect on our net investment income.
+Added: In connection with the COVID-19 pandemic, the U.S.
+Added: Federal Reserve and other central banks have
+Added: reduced certain interest rates and LIBOR has decreased.
+Added: In a prolonged low interest rate environment, including a reduction of LIBOR to zero, the difference between the total interest income earned on interest earning assets and the total interest
+Added: expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results.
+Added: During the fiscal year ended December 31, 2020, certain of the investments in our
+Added: comprehensive investment portfolio had floating interest rates.
+Added: These floating rate investments were primarily based on floating LIBOR and typically have durations of one to three months after which they reset to current market interest rates.
Additionally, some of these investments have LIBOR floors.
The Company also has revolving credit facilities that are generally based on floating LIBOR.
−Removed: Assuming no changes to our balance sheet as of December 31, 2019 and
−Removed: no new defaults by portfolio companies, a hypothetical one percent decrease in LIBOR on our comprehensive floating rate assets and liabilities would reduce our net investment income by five cents per average share over the next twelve months.
−Removed: Assuming no changes to our balance sheet as of December 31, 2019 and no new defaults by portfolio companies, a hypothetical one percent increase in LIBOR on our comprehensive floating rate assets and liabilities would increase our net
−Removed: investment income by approximately fourteen cents per average share over the next twelve months.
−Removed: However, we may hedge against interest rate fluctuations from
−Removed: time-to-time by using standard hedging instruments such as futures, options, swaps and forward contracts subject to the requirements of the 1940 Act.
−Removed: While hedging
−Removed: activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in any benefits of certain changes in interest rates with respect to our portfolio of investments.
−Removed: At December 31, 2019, we
−Removed: have no interest rate hedging instruments outstanding on our balance sheet.
+Added: Assuming no changes to our balance sheet as of December 31, 2020 and no new defaults by
+Added: portfolio companies, a hypothetical one percent decrease in LIBOR on our comprehensive floating rate assets and liabilities would increase our net investment income by two cents per average share over the next twelve months.
+Added: Assuming no changes to
+Added: our balance sheet as of December 31, 2020 and no new defaults by portfolio companies, a hypothetical one percent increase in LIBOR on our comprehensive floating rate assets and liabilities would decrease our net investment income by
+Added: approximately five cents per average share over the next twelve months.
+Added: However, we may hedge against interest rate fluctuations from time-to-time by using standard
+Added: hedging instruments such as futures, options, swaps and forward contracts subject to the requirements of the 1940 Act.
+Added: While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate
+Added: in any benefits of certain changes in interest rates with respect to our portfolio of investments.
+Added: At December 31, 2020, we have no interest rate hedging instruments outstanding on our balance sheet.
Increase (Decrease) in LIBOR
−Removed: Increase (Decrease) in Net Investment Income Per Share Per Year
+Added: Increase in Net Investment Income Per Share Per Year
We may also have exposure to foreign currencies through various investments.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.