| Derivative Instruments |
Note 5. Derivative Instruments The Company may enter into foreign currency forward contracts from time to time to facilitate the settlement of purchases and sales of investments denominated in foreign currencies and to economically hedge the impact that an adverse change in foreign exchange rates would have on the value of investments denominated in foreign currencies. A foreign currency forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. These contracts are marked-to-market by recognizing the difference between the contract forward exchange rate and the forward market exchange rate on the last day of the period presented as unrealized appreciation or depreciation. Realized gains or losses are recognized when forward contracts are settled. Risks arise as a result of the potential inability of the counterparties to meet the terms of their contracts; we attempt to limit counterparty risk by only dealing with well-known counterparties and those that we believe have the financial resources to honor their obligations. The foreign currency forward contracts open at the end of the period are generally indicative of the volume of activity during the period. The following tables present the open foreign currency forward contracts as of December 31, 2025 and December 31, 2024:
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|
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|
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|
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|
|
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|
|
|
|
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December 31, 2025 |
|
Foreign Currency |
|
Settlement Date |
|
Statement of Assets and Liabilities Location |
|
Counterparty |
|
Amount Transacted |
|
|
Notional Value at Settlement |
|
|
Notional Value at Period End |
|
|
Fair Value |
|
AUD |
|
January 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 196 |
|
|
$ |
127 |
|
|
$ |
130 |
|
|
$ |
(3 |
) |
AUD |
|
March 11, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 1,287 |
|
|
$ |
830 |
|
|
$ |
859 |
|
|
$ |
(29 |
) |
AUD |
|
March 11, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 1,314 |
|
|
$ |
848 |
|
|
$ |
871 |
|
|
$ |
(23 |
) |
AUD |
|
April 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 193 |
|
|
$ |
124 |
|
|
$ |
128 |
|
|
$ |
(4 |
) |
AUD |
|
June 11, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 1,326 |
|
|
$ |
856 |
|
|
$ |
884 |
|
|
$ |
(28 |
) |
AUD |
|
June 11, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 79,323 |
|
|
$ |
51,156 |
|
|
$ |
52,451 |
|
|
$ |
(1,295 |
) |
AUD |
|
September 11, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 1,336 |
|
|
$ |
863 |
|
|
$ |
890 |
|
|
$ |
(27 |
) |
AUD |
|
October 7, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 196 |
|
|
$ |
127 |
|
|
$ |
130 |
|
|
$ |
(3 |
) |
AUD |
|
December 11, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
AUD 1,325 |
|
|
$ |
855 |
|
|
$ |
881 |
|
|
$ |
(26 |
) |
GBP |
|
January 7, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 60 |
|
|
$ |
80 |
|
|
$ |
81 |
|
|
$ |
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
Foreign Currency |
|
Settlement Date |
|
Statement of Assets and Liabilities Location |
|
Counterparty |
|
Amount Transacted |
|
|
Notional Value at Settlement |
|
|
Notional Value at Period End |
|
|
Fair Value |
|
GBP |
|
January 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 116 |
|
|
$ |
153 |
|
|
$ |
156 |
|
|
$ |
(3 |
) |
GBP |
|
March 18, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 76,442 |
|
|
$ |
102,196 |
|
|
$ |
102,986 |
|
|
$ |
(790 |
) |
GBP |
|
July 7, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 115 |
|
|
$ |
154 |
|
|
$ |
155 |
|
|
$ |
(1 |
) |
GBP |
|
July 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 114 |
|
|
$ |
151 |
|
|
$ |
153 |
|
|
$ |
(2 |
) |
GBP |
|
October 8, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 2,558 |
|
|
$ |
3,381 |
|
|
$ |
3,436 |
|
|
$ |
(55 |
) |
GBP |
|
January 7, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 2,398 |
|
|
$ |
3,234 |
|
|
$ |
3,231 |
|
|
$ |
3 |
|
GBP |
|
January 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 3,507 |
|
|
$ |
4,707 |
|
|
$ |
4,719 |
|
|
$ |
(12 |
) |
GBP |
|
March 8, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 117 |
|
|
$ |
155 |
|
|
$ |
157 |
|
|
$ |
(2 |
) |
GBP |
|
March 9, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 243 |
|
|
$ |
325 |
|
|
$ |
328 |
|
|
$ |
(3 |
) |
GBP |
|
March 18, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP (14,340) |
|
|
$ |
(19,261 |
) |
|
$ |
(19,319 |
) |
|
$ |
58 |
|
GBP |
|
June 8, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 121 |
|
|
$ |
162 |
|
|
$ |
163 |
|
|
$ |
(1 |
) |
GBP |
|
June 8, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 119 |
|
|
$ |
159 |
|
|
$ |
162 |
|
|
$ |
(3 |
) |
GBP |
|
July 7, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 3,499 |
|
|
$ |
4,712 |
|
|
$ |
4,713 |
|
|
$ |
(1 |
) |
GBP |
|
July 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 3,446 |
|
|
$ |
4,608 |
|
|
$ |
4,630 |
|
|
$ |
(22 |
) |
GBP |
|
July 14, 2028 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 3,578 |
|
|
$ |
4,655 |
|
|
$ |
4,796 |
|
|
$ |
(141 |
) |
GBP |
|
July 15, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 2,557 |
|
|
$ |
3,341 |
|
|
$ |
3,435 |
|
|
$ |
(94 |
) |
GBP |
|
September 8, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 120 |
|
|
$ |
160 |
|
|
$ |
162 |
|
|
$ |
(2 |
) |
GBP |
|
September 8, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 5,120 |
|
|
$ |
6,782 |
|
|
$ |
6,876 |
|
|
$ |
(94 |
) |
GBP |
|
September 9, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 78,727 |
|
|
$ |
105,132 |
|
|
$ |
105,726 |
|
|
$ |
(594 |
) |
GBP |
|
December 8, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 118 |
|
|
$ |
158 |
|
|
$ |
160 |
|
|
$ |
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
Foreign Currency |
|
Settlement Date |
|
Statement of Assets and Liabilities Location |
|
Counterparty |
|
Amount Transacted |
|
|
Notional Value at Settlement |
|
|
Notional Value at Period End |
|
|
Fair Value |
|
CAD |
|
January 6, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 1,306 |
|
|
$ |
954 |
|
|
$ |
952 |
|
|
$ |
2 |
|
CAD |
|
March 31, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 1,718 |
|
|
$ |
1,268 |
|
|
$ |
1,256 |
|
|
$ |
12 |
|
CAD |
|
June 30, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 76,721 |
|
|
$ |
56,704 |
|
|
$ |
56,309 |
|
|
$ |
395 |
|
EUR |
|
January 7, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 544 |
|
|
$ |
638 |
|
|
$ |
639 |
|
|
$ |
(1 |
) |
EUR |
|
January 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 1,083 |
|
|
$ |
1,289 |
|
|
$ |
1,291 |
|
|
$ |
(2 |
) |
EUR |
|
March 18, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 37,240 |
|
|
$ |
43,954 |
|
|
$ |
43,907 |
|
|
$ |
47 |
|
EUR |
|
July 7, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 1,064 |
|
|
$ |
1,258 |
|
|
$ |
1,260 |
|
|
$ |
(2 |
) |
EUR |
|
July 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 1,075 |
|
|
$ |
1,286 |
|
|
$ |
1,289 |
|
|
$ |
(3 |
) |
EUR |
|
October 8, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 28,828 |
|
|
$ |
34,564 |
|
|
$ |
34,659 |
|
|
$ |
(95 |
) |
EUR |
|
January 7, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 1,069 |
|
|
$ |
1,255 |
|
|
$ |
1,256 |
|
|
$ |
(1 |
) |
EUR |
|
July 7, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 1,576 |
|
|
$ |
1,867 |
|
|
$ |
1,880 |
|
|
$ |
(13 |
) |
EUR |
|
January 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 1,609 |
|
|
$ |
1,918 |
|
|
$ |
1,918 |
|
|
$ |
— |
|
EUR |
|
March 8, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 444 |
|
|
$ |
529 |
|
|
$ |
531 |
|
|
$ |
(2 |
) |
EUR |
|
March 9, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 905 |
|
|
$ |
1,064 |
|
|
$ |
1,067 |
|
|
$ |
(3 |
) |
EUR |
|
June 8, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 453 |
|
|
$ |
535 |
|
|
$ |
536 |
|
|
$ |
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
Foreign Currency |
|
Settlement Date |
|
Statement of Assets and Liabilities Location |
|
Counterparty |
|
Amount Transacted |
|
|
Notional Value at Settlement |
|
|
Notional Value at Period End |
|
|
Fair Value |
|
EUR |
|
June 8, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 457 |
|
|
$ |
546 |
|
|
$ |
548 |
|
|
$ |
(2 |
) |
EUR |
|
July 7, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 1,605 |
|
|
$ |
1,922 |
|
|
$ |
1,924 |
|
|
$ |
(2 |
) |
EUR |
|
September 9, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 43,078 |
|
|
$ |
51,680 |
|
|
$ |
51,744 |
|
|
$ |
(64 |
) |
EUR |
|
September 8, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 452 |
|
|
$ |
535 |
|
|
$ |
536 |
|
|
$ |
(1 |
) |
EUR |
|
September 8, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 23,599 |
|
|
$ |
28,244 |
|
|
$ |
28,347 |
|
|
$ |
(103 |
) |
EUR |
|
December 8, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 447 |
|
|
$ |
531 |
|
|
$ |
533 |
|
|
$ |
(2 |
) |
CHF |
|
January 6, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 1,082 |
|
|
$ |
1,370 |
|
|
$ |
1,366 |
|
|
$ |
4 |
|
CHF |
|
February 26, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 131,613 |
|
|
$ |
158,188 |
|
|
$ |
172,977 |
|
|
$ |
(14,789 |
) |
CHF |
|
February 27, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 1,895 |
|
|
$ |
2,197 |
|
|
$ |
2,405 |
|
|
$ |
(208 |
) |
CHF |
|
March 29, 2029 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 323 |
|
|
$ |
417 |
|
|
$ |
454 |
|
|
$ |
(37 |
) |
CHF |
|
March 31, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 325 |
|
|
$ |
379 |
|
|
$ |
415 |
|
|
$ |
(36 |
) |
CHF |
|
March 31, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 10 |
|
|
$ |
12 |
|
|
$ |
13 |
|
|
$ |
(1 |
) |
CHF |
|
March 31, 2028 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 10 |
|
|
$ |
12 |
|
|
$ |
13 |
|
|
$ |
(1 |
) |
CHF |
|
May 27, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 1,845 |
|
|
$ |
2,159 |
|
|
$ |
2,364 |
|
|
$ |
(205 |
) |
CHF |
|
June 30, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 329 |
|
|
$ |
386 |
|
|
$ |
423 |
|
|
$ |
(37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
Foreign Currency |
|
Settlement Date |
|
Statement of Assets and Liabilities Location |
|
Counterparty |
|
Amount Transacted |
|
|
Notional Value at Settlement |
|
|
Notional Value at Period End |
|
|
Fair Value |
|
CHF |
|
June 30, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 10 |
|
|
$ |
12 |
|
|
$ |
13 |
|
|
$ |
(1 |
) |
CHF |
|
June 30, 2028 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 10 |
|
|
$ |
12 |
|
|
$ |
13 |
|
|
$ |
(1 |
) |
CHF |
|
August 27, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 1,906 |
|
|
$ |
2,250 |
|
|
$ |
2,463 |
|
|
$ |
(213 |
) |
CHF |
|
September 29, 2028 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 10 |
|
|
$ |
12 |
|
|
$ |
14 |
|
|
$ |
(2 |
) |
CHF |
|
September 30, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 333 |
|
|
$ |
395 |
|
|
$ |
431 |
|
|
$ |
(36 |
) |
CHF |
|
September 30, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 10 |
|
|
$ |
12 |
|
|
$ |
13 |
|
|
$ |
(1 |
) |
CHF |
|
November 27, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 1,928 |
|
|
$ |
2,297 |
|
|
$ |
2,513 |
|
|
$ |
(216 |
) |
CHF |
|
December 29, 2028 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 10 |
|
|
$ |
13 |
|
|
$ |
14 |
|
|
$ |
(1 |
) |
CHF |
|
December 31, 2026 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 333 |
|
|
$ |
398 |
|
|
$ |
435 |
|
|
$ |
(37 |
) |
CHF |
|
December 31, 2027 |
|
Unrealized depreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CHF 10 |
|
|
$ |
12 |
|
|
$ |
13 |
|
|
$ |
(1 |
) |
Total |
|
|
|
|
|
|
|
|
|
|
$ |
684,004 |
|
|
$ |
702,864 |
|
|
$ |
(18,860 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
Foreign Currency |
|
Settlement Date |
|
Statement of Assets and Liabilities Location |
|
Counterparty |
|
Amount Transacted |
|
|
Notional Value at Settlement |
|
|
Notional Value at Period End |
|
|
Fair Value |
|
GBP |
|
March 19, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 20,029 |
|
|
$ |
25,407 |
|
|
$ |
25,068 |
|
|
$ |
338 |
|
GBP |
|
July 14, 2028 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 3,578 |
|
|
$ |
4,655 |
|
|
$ |
4,479 |
|
|
$ |
176 |
|
GBP |
|
July 15, 2027 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 2,557 |
|
|
$ |
3,341 |
|
|
$ |
3,195 |
|
|
$ |
146 |
|
GBP |
|
July 31, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 80,000 |
|
|
$ |
105,726 |
|
|
$ |
100,128 |
|
|
$ |
5,598 |
|
GBP |
|
July 31, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 790 |
|
|
$ |
1,024 |
|
|
$ |
988 |
|
|
$ |
36 |
|
GBP |
|
July 31, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
GBP 988 |
|
|
$ |
1,251 |
|
|
$ |
1,235 |
|
|
$ |
16 |
|
CAD |
|
March 31, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 1,845 |
|
|
$ |
1,354 |
|
|
$ |
1,287 |
|
|
$ |
67 |
|
CAD |
|
March 31, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 1,718 |
|
|
$ |
1,268 |
|
|
$ |
1,216 |
|
|
$ |
52 |
|
CAD |
|
June 30, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 1,823 |
|
|
$ |
1,340 |
|
|
$ |
1,276 |
|
|
$ |
63 |
|
CAD |
|
June 30, 2026 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 76,721 |
|
|
$ |
56,704 |
|
|
$ |
54,480 |
|
|
$ |
2,224 |
|
CAD |
|
September 29, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 1,786 |
|
|
$ |
1,315 |
|
|
$ |
1,255 |
|
|
$ |
60 |
|
CAD |
|
December 31, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
CAD 1,719 |
|
|
$ |
1,268 |
|
|
$ |
1,213 |
|
|
$ |
54 |
|
EUR |
|
March 19, 2025 |
|
Unrealized appreciation on foreign currency forward contracts |
|
Macquarie |
|
|
EUR 37,240 |
|
|
$ |
39,318 |
|
|
$ |
38,707 |
|
|
$ |
611 |
|
Total |
|
|
|
|
|
|
|
|
|
|
$ |
243,971 |
|
|
$ |
234,527 |
|
|
$ |
9,441 |
|
The following table presents the net realized and unrealized gains and losses on derivative instruments recorded for the years ended December 31, 2025, 2024 and 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Operations Location |
|
For the Year Ended December 31, 2025 |
|
|
For the Year Ended December 31, 2024 |
|
|
For the Year Ended December 31, 2023 |
|
Net realized gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency forward contracts |
|
Net realized gains (losses) on foreign currency forward contracts |
|
$ |
(6,868 |
) |
|
$ |
3,137 |
|
|
$ |
(2,076 |
) |
Net change in unrealized appreciation (depreciation) |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency forward contracts |
|
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts |
|
|
(28,302 |
) |
|
|
10,238 |
|
|
|
(461 |
) |
Net realized and unrealized gains on foreign currency forward contracts |
|
|
|
$ |
(35,170 |
) |
|
$ |
13,375 |
|
|
$ |
(2,537 |
) |
For derivatives traded under an International Swaps and Derivatives Association Master Agreement ("ISDA Master Agreement"), the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Company or the counterparty. Cash collateral that has been pledged, if any, to cover obligations of the Company and cash collateral received from the counterparty, if any, is reported on the consolidated statements of assets and liabilities as collateral deposits (received) for foreign currency forward contracts. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold before a transfer is required. To the extent amounts due to the Company from a counterparty are not fully collateralized, the Company bears the risk of loss from counterparty non-performance. The following table presents the derivative assets and liabilities by counterparty, net of amounts available for offset under a master netting agreement or similar arrangement, and net of related collateral received for assets or pledged for liabilities as of December 31, 2025 and December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
Counterparty |
|
Gross Amounts of Recognized Derivative Assets |
|
|
Gross Amounts Offset in the Statement of Assets and Liabilities |
|
|
Net Amounts of Assets Presented in the Statement of Financial Position |
|
|
Collateral Received (1) |
|
|
Net position of Derivative Assets and Collateral Received |
|
December 31, 2025 |
|
Macquarie |
|
$ |
521 |
|
|
$ |
(521 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
Counterparty |
|
Gross Amounts of Recognized Derivative Liabilities |
|
|
Gross Amounts Offset in the Statement of Assets and Liabilities |
|
|
Net Amounts of Liabilities Presented in the Statement of Financial Position |
|
|
Collateral Pledged (1) |
|
|
Net position of Derivative Liabilities and Pledged Collateral |
|
December 31, 2025 |
|
Macquarie |
|
$ |
(19,381 |
) |
|
$ |
521 |
|
|
$ |
(18,860 |
) |
|
$ |
— |
|
|
$ |
(18,860 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
Counterparty |
|
Gross Amounts of Recognized Derivative Assets |
|
|
Gross Amounts Offset in the Statement of Assets and Liabilities |
|
|
Net Amounts of Assets Presented in the Statement of Financial Position |
|
|
Collateral Pledged (1) |
|
|
Net position of Derivative Assets and Collateral Received |
|
December 31, 2024 |
|
Macquarie |
|
$ |
9,441 |
|
|
$ |
— |
|
|
$ |
9,441 |
|
|
$ |
— |
|
|
$ |
9,441 |
|
(1)Lesser of the amount pledged and the amount needed to offset the liability. The Company may also enter into interest rate swap transactions from time to time to hedge fixed rate debt obligations to align with our predominantly floating rate portfolio. The Company designated these interest rate swaps and the associated unsecured notes as qualifying fair value hedge accounting relationships. As of December 31, 2025, the counterparty to the Company's interest rate swaps was Goldman Sachs International for the Series F Notes and 2030 Notes, and JPMorgan Chase Bank, N.A. for the 2031 Notes. As of December 31, 2024, the counterparty to all of the Company's interest rate swaps was Goldman Sachs International. Certain information related to the Company's interest rate swap as of December 31, 2025 is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
|
Description |
|
Hedged Item |
|
Company Receives |
|
Company Pays |
|
Maturity Date |
|
Notional Amount |
|
Interest rate swap |
|
Series F Notes |
|
7.11% |
|
SOFR + 3.117% |
|
5/20/2030 |
|
$ |
165,000 |
|
Interest rate swap |
|
2030 Notes |
|
6.25% |
|
SOFR + 2.4115% |
|
5/31/2030 |
|
$ |
500,000 |
|
Interest rate swap |
|
2031 Notes |
|
6.13% |
|
SOFR + 2.715% |
|
2/5/2031 |
|
$ |
400,000 |
|
As a result of the Company's designation of the interest rate swaps as hedging instruments in qualifying fair value hedge accounting relationships, the Company is required to fair value the hedging instruments and the related hedged items. The swap adjusted interest expense is included as a component of interest expense on the Company's Consolidated Statements of Operations. For the year ended December 31, 2025 the interest rate swaps had a change in fair value of $8.9 million, which is offset within interest expense to the extent of the fair value change for the hedged risk on the Series F, 2030 Notes and 2031 Notes. For the years ended December 31, 2025 and December 31, 2024, the Company recognized no net change in realized or unrealized gains or losses on interest rate swaps not designated as hedging instruments in the Consolidated Statements of Operations. The balance sheet impact of fair valuing the interest rate swaps as of December 31, 2025 and December 31, 2024 is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
Derivative Instrument |
Notional Amount |
|
|
Maturity Date |
|
Gross Amount of Recognized Assets |
|
|
Gross Amount of Recognized Liabilities |
|
|
Balance Sheet Location of Amounts |
Interest rate swap (1) |
$ |
165,000 |
|
|
5/20/2030 |
|
$ |
3,302 |
|
|
$ |
— |
|
|
Prepaid expenses and other assets |
Interest rate swap (2) |
$ |
500,000 |
|
|
5/31/2030 |
|
$ |
7,051 |
|
|
$ |
— |
|
|
Prepaid expenses and other assets |
Interest rate swap (3) |
$ |
400,000 |
|
|
2/5/2031 |
|
$ |
— |
|
|
$ |
(2,293 |
) |
|
Accrued expenses and other liabilities |
(1)The asset related to the fair value of the interest rate swaps was offset by a $3.3 million increase to the carrying value of the Series F Notes. (2)The asset related to the fair value of the interest rate swaps was offset by a $7.0 million increase to the carrying value of the 2030 Notes. (3)The liability related to the fair value of the interest rate swaps was offset by a $2.3 million decrease to the carrying value of the 2031 Notes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2024 |
Derivative Instrument |
Notional Amount |
|
|
Maturity Date |
|
Gross Amount of Recognized Assets |
|
|
Gross Amount of Recognized Liabilities |
|
|
Balance Sheet Location of Amounts |
Interest rate swap (1) |
$ |
165,000 |
|
|
5/20/2030 |
|
$ |
— |
|
|
$ |
(859 |
) |
|
Accrued expenses and other liabilities |
(1)The liability related to the fair value of the interest rate swaps was offset by a $0.9 million decrease to the carrying value of the Series F Notes.
|