5 unchanged sentences
The following table summarizes the aggregate principal balance of variable rate investments and indebtedness as of:
−Removed: March 31, 2024
+Added: June 30, 2024
Variable rate investments $ 383,576,552
Variable rate debt $ 226,629,645
−Removed: The following table summarizes estimated changes in net investment income on our variable rate investments and indebtedness as of March 31, 2024 assuming hypothetical increases or decreases in Term SOFR or SOFR:
+Added: The following table summarizes estimated changes in net investment income on our variable rate investments and indebtedness as of June 30, 2024 assuming hypothetical increases or decreases in Term SOFR or SOFR:
1.00% Decrease 1.00% Increase
−Removed: Investment income from variable rate investments $ (4,175,598) $ 4,214,402
−Removed: Interest expense from variable rate debt 1,558,213 (2,214,026)
−Removed: Net investment income from variable rate instruments $ (2,617,385) $ 2,000,376
+Added: Increase (decrease) in investment income from variable rate investments $ (3,962,820) $ 4,000,997
+Added: Decrease (increase) in interest expense from variable rate debt 1,616,258 (2,266,296)
+Added: Net increase (decrease) in investment income from variable rate instruments $ (2,346,562) $ 1,734,701
We may hedge against interest rate fluctuations by using standard hedging instruments, such as futures, options and forward contracts.
While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.
−Removed: For the three months ended March 31, 2024 and 2023, we did not engage in interest rate hedging activities.
+Added: For the three and six months ended June 30, 2024 and 2023, we did not engage in interest rate hedging activities that qualify for hedge accounting.
Prepayment Risks
2 unchanged sentences
If we do not collect a prepayment fee in connection with a prepayment or are unable to invest the proceeds of such prepayments received, the yield on the portfolio will decline.
−Removed: In addition, we may acquire assets at a discount or premium and if the asset does not
−Removed: repay when expected, the anticipated yield may be impacted.
+Added: In addition, we may acquire assets at a discount or premium and if the asset does not repay when expected, the anticipated yield may be impacted.
Under certain interest rate and prepayment scenarios we may fail to recoup fully our cost of acquisition of certain loans.
17 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.