The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kenneth Lee - RBC Capital Markets - Analyst
: Just one on the macro backdrop. And obviously, it sounds like you're maintaining a conservative discipline. Any kind of updated outlook or thoughts
around where leverage could range? Is there still continued possibility of potential deleveraging over the near term there?
Question: Kenneth Lee - RBC Capital Markets - Analyst
: Got you. And then in terms of -- one follow-up, if I may. In terms of the potential opportunities, the attractive opportunities, especially within the
liquid loan markets, are you seeing some early signs of pockets of opportunities at this point? And perhaps are there any certain sectors or areas
that look particularly interesting at this point?
Question: Kenneth Lee - RBC Capital Markets - Analyst
: Got you. Actually, one quick follow-up, if I may. In terms of the pay downs in the quarter and aside from any kind of refinancings or repayments,
were there any discretionary trades or investments that were sold within the portfolio in the quarter there?
Question: Melissa Wedel - JPMorgan - Analyst
: Wanted to start on just the earnings power of the portfolio right now. Certainly, you talked about spread starting to widen out on new investments.
It also sounds like your appetite to deploy additional capital rate now is not totally robust. You're waiting for -- you're sitting on some dry powder
and looking for a little more clarity, it sounds like.
So as we think about the earnings power of the portfolio going forward, while you guys take a very -- maybe a measured approach to deploying
capital into wider spot opportunities, how are you thinking about earnings power relative to 1Q levels?
Question: Melissa Wedel - JPMorgan - Analyst
: Okay. I appreciate that. And then as you are evaluating opportunities in this very fluid environment, one thing you do know for sure is that where
your stock is trading and where your NAV is certainly trading at quite a discount now. Obviously, you've got a repurchase plan there in place, should
we be expecting repurchase activity to pick up (inaudible) discount do now?
Question: Melissa Wedel - JPMorgan - Analyst
: Wanted to talk about -- touch on the decline in NAV sort of quarter-over-quarter. I think one of the things that surprised us a little bit was the
magnitude of the NAV decline, particularly with how much flexibility you have relative to other BDCs to rotate assets. It sounds like -- I heard you
say that a lot of the activity in the first quarter was from rate payments.
As you saw some (inaudible) any soft and spreads widen on them, should we have -- I think we would have expected that you might be a little bit
more nimble in making relative value trades within the portfolio. Can you just elaborate on that on what you saw throughout the quarter and how
that decision-making takes place? And how we should think about that going forward?
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