−Removed: QUANTITATIVE AND QUALITATIVE
−Removed: DISCLOSURES ABOUT MARKET RISK
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
the year ended December 31, 2020, our cash and cash equivalents were deposited in accounts at well capitalized financial institutions.
2 unchanged sentences
are subject to financial market risks, including changes in interest rates.
−Removed: As we seek to provide capital to a broad range of
−Removed: life science companies, institutions and investors, our net investment income is dependent, in part, upon the difference between
−Removed: the rate at which we earn on our cash and cash equivalents and the rate at which we lend those funds to third parties.
−Removed: we would be subject to risks relating to changes in market interest rates.
−Removed: We may use interest rate risk management techniques
−Removed: in an effort to limit our exposure to interest rate fluctuations by providing capital at variable interest rates.
−Removed: constantly monitor our portfolio and position our portfolio to respond appropriately to a reduction in credit rating of any of
−Removed: our investments.
−Removed: During 2018, we entered into a revolving credit facility.
−Removed: borrow funds to make additional investments, our income will depend, in part, upon the difference between the rate at which we
−Removed: borrow funds and the rate at which we invest those funds.
−Removed: As a result, we are subject to risks relating to changes in market interest
−Removed: In periods of rising interest rates when we have debt outstanding, our cost of funds would increase, which could reduce
−Removed: our income, especially to the extent we continue to hold fixed rate investments.
−Removed: If deemed prudent, we may use interest rate risk
−Removed: management techniques in an effort to minimize our exposure to interest rate fluctuations.
−Removed: Adverse developments resulting from
−Removed: changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and
−Removed: results of operations.
−Removed: We do not believe
−Removed: that inflation has had a significant impact on our revenues or operations.
+Added: Interest rate risk is defined as the sensitivity of
+Added: our current and future earnings to interest rate volatility, variability of spread relationships, the difference in re-pricing
+Added: intervals between our assets and liabilities and the effect that interest rates may have on our cash flow.
+Added: we seek to provide capital to a broad range of life science companies, institutions and investors with the majority of our finance
+Added: receivables portfolio paying interest based on floating interest rates with a LIBOR floor, our net investment income is dependent,
+Added: in part, upon the difference between the rate at which we earn on our cash and cash equivalents and the rate at which we lend
+Added: those funds to third parties.
+Added: As a result, we are subject to risks relating to changes in market interest rates.
+Added: We may use interest
+Added: rate risk management techniques in an effort to limit our exposure to interest rate fluctuations by providing capital at variable
+Added: interest rates.
+Added: We do not currently engage in any interest rate hedging activities.
+Added: We constantly monitor our portfolio and position
+Added: our portfolio to respond appropriately to a reduction in credit rating of any of our investments.
+Added: 2018, we entered into a revolving credit facility.
+Added: As we borrow funds to make additional investments, our income will depend,
+Added: in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds.
+Added: we are subject to risks relating to changes in market interest rates.
+Added: In periods of rising interest rates when we have debt outstanding,
+Added: our cost of funds would increase, which could reduce our income, especially to the extent we continue to hold fixed rate investments.
+Added: We generally seek to mitigate this risk by pricing our debt investments with floating interest rates to maintain the spread of
+Added: our portfolio over the cost of leverage.
+Added: If deemed prudent, we may use interest rate risk management techniques in an effort to
+Added: minimize our exposure to interest rate fluctuations, which we have not done.
+Added: Adverse developments resulting from changes in interest
+Added: rates or hedging transactions could have a materially adverse effect on our business, financial condition and results of operations.
+Added: Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect
+Added: on our investment income, net of borrowing expenses.
+Added: not believe that inflation has had a significant impact on our revenues or operations.
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.