Derivatives and Hedging Activity |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives and Hedging Activity | 7. Derivatives and Hedging Activity Risk Management Objective of Using Derivatives The Company is exposed to certain foreign currency risk from its investments in assets denominated in currencies other than the United States dollar (“USD”). Designated Hedges The Company does not generally elect to apply hedge accounting designations to its hedging instruments. As of June 30, 2025 and December 31, 2024, the Company did not have any derivatives designated as hedges. Non-designated Hedges and Derivatives The Company has entered into FX forward contracts pursuant to which the Company agrees to buy or sell a specified amount of foreign currency for a specified amount of USD at a future date, economically fixing the USD amounts of foreign denominated cash flows the Company expects to receive or pay related to certain foreign denominated loan investments. The following tables summarize the Company’s non-designated derivatives as of June 30, 2025 and December 31, 2024, respectively (notional amounts in thousands):
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (dollars in thousands):
The table below presents the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations for the three months ended June 30, 2025 and 2024, respectively (dollars in thousands):
The table below presents the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations for the six months ended June 30, 2025 and 2024, respectively (dollars in thousands):
The Company classifies foreign currency forward contracts as Level 2 fair value measurements pursuant to the fair value hierarchy. See Note 5 – “Fair Value Measurements” for further details. |
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