What changed in this filing

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

2021-08-09 compared with 2021-05-10 · 33 added, 28 removed, 40 unchanged (60% of the section changed)

16 unchanged sentences

Assuming that the consolidated statement

of assets and liabilities as of March 31, 2021 was to remain constant and that we took no actions to alter our existing interest rate

sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (dollars in thousands).

of assets and liabilities as of June 30, 2021 was to remain constant and that we took no actions to alter our existing interest rate sensitivity,

the following table shows the annualized impact of hypothetical base rate changes in interest rates (dollars in thousands).

Increase(Decrease) in

2 unchanged sentences

Increase(Decrease)

As of March 31, 2021, nearly all of the performing

floating rate investments in our portfolio had interest rate floors.

Variable-rate investments subject to a floor generally reset periodically

to the applicable floor and, in the case of investments in our portfolio, quarterly to a floor based on LIBOR, only if the floor exceeds

Under these loans, we do not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit

from market rates above any such floor.

For a discussion of the risks associated

with the discontinuation of LIBOR, see “Item 1A.

As of June 30,

2021, nearly all of the performing floating rate investments in our portfolio had interest rate floors.

Variable-rate investments subject

to a floor generally reset periodically to the applicable floor and, in the case of investments in our portfolio, quarterly to a floor

based on LIBOR, only if the floor exceeds the index.

Under these loans, we do not benefit from increases in interest rates until such

rates exceed the floor and thereafter benefit from market rates above any such floor.

For a discussion

of the risks associated with the discontinuation of LIBOR, see “Item 1A.

Risk Factors —

Risks Relating to Our Business and Structure —

we are using debt to finance our investments, and we may use additional debt or preferred stock financing going forward, changes in interest

rates may affect our cost of capital, net investment income, value of our common stock and our rate of return on invested capital”

Risks Relating to Our Business and

Structure —

Since we are using debt to finance our investments, and we may use additional debt or preferred stock financing going

forward, changes in interest rates may affect our cost of capital, net investment income, value of our common stock and our rate of return

on invested capital”

in our annual report on Form 10-K for the year ended December 31, 2020.

13 unchanged sentences

interest rates.

We may enter into foreign currency forward contracts from time to

time to facilitate settlement of purchases and sales of investments denominated in foreign currencies and to hedge economically the

impact that an adverse change in foreign exchange rates would have on the value of our investments denominated in foreign

We currently utilize forward foreign currency exchange contracts to protect ourselves against fluctuations in exchange

During the three months ended March 31, 2021 and 2020, we recognized a realized gain of $0 and $6,000 and an unrealized loss

of $1,000 and $1,000, respectively, in the statement of operations relating to forward currency exchange contracts held during the

See Note 3 to our Notes to consolidated financial statements.

We may enter into foreign currency forward

contracts from time to time to facilitate settlement of purchases and sales of investments denominated in foreign currencies and to hedge

economically the impact that an adverse change in foreign exchange rates would have on the value of our investments denominated in foreign

We currently utilize forward foreign currency exchange contracts to protect ourselves against fluctuations in exchange rates.

During the three and six months ended June 30, 2021, we recognized

a realized loss of $4,000 and an unrealized gain of $1,000 and $0, respectively, in the statement of operations relating to forward currency exchange contracts held during the year.

the three and six months ended June 30, 2020, we recognized a realized loss of $6,000 and $0 and an unrealized loss of $2,000 and $3,000,

respectively, in the statement of operations relating to forward currency exchange contracts held during the year.

See Note 3 to our Notes

to consolidated financial statements.

In addition, the COVID-19 pandemic has

resulted in a decrease in LIBOR and a general reduction of certain interest rates by the U.S.

Federal Reserve and other central

A continued decline in interest rates, including LIBOR has resulted in, and could continue to result in a reduction of

our gross investment income.

In addition, our net investment income could also decline if such decreases in LIBOR are not offset by,

among other things, a corresponding increase in the spread over LIBOR in our portfolio investments, a decrease in our operating

expenses or a decrease in the interest rates of our liabilities that are tied to LIBOR.

Federal Reserve and other central banks.

A continued decline in interest rates, including LIBOR has resulted in, and could continue to result in a reduction of our gross investment

In addition, our net investment income could also decline if such decreases in LIBOR are not offset by, among other things, a

corresponding increase in the spread over LIBOR in our portfolio investments, a decrease in our operating expenses or a decrease in the

interest rates of our liabilities that are tied to LIBOR.

See “Item 2.

Management’s

Discussion and Analysis of Financial Condition and Results of Operations—COVID-19 Developments.”

Management’s Discussion and Analysis of Financial Condition

and Results of Operations—COVID-19 Developments.”

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.

What changed 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk