v3.26.1
Derivative Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company enters into derivative instruments from time to time to help mitigate its foreign currency and interest rate risk exposures. See “Note 6 — Fair Value of Investments” for additional disclosures related to the fair value hierarchy for derivative instruments.
The table below presents the fair value and notional value of the derivative assets and liabilities for the following periods:
As of June 30, 2026As of December 31, 2025
Counterparty
Notional AmountAssetsLiabilitiesNotional AmountAssetsLiabilities
Derivatives designated as hedges:
Interest Rate Swap September 2027 NotesGoldman Sachs Bank USA$600,000 $— $(5,802)$600,000 $— $(768)
Interest Rate Swap AUD 2027 NotesGoldman Sachs Bank USAA$450,000 6,516 (474)A$450,000 — (2,133)
Interest Rate Swap May 2028 NotesDeutsche Bank AG500,000 — (3,229)500,000 3,936 — 
Interest Rate Swap June 2028 NotesUS Bank National Association650,000 — (8,549)650,000 70 — 
Interest Rate Swap January 2029 NotesGoldman Sachs Bank USA550,000 — (7,650)550,000 10,005 — 
Interest Rate Swap March 2030 NotesGoldman Sachs Bank USA1,000,000 — (28,571)1,000,000 — (11,766)
Interest Rate Swap March 2031 NotesDeutsche Bank AG750,000 — (7,540)750,000 7,717 — 
Interest Rate Swap September 2029 NotesGoldman Sachs Bank USA900,000 5,306 — 900,000 23,947 — 
Interest Rate Swap EUR 2031 NotesDeutsche Bank AG€500,000 — (8,814)€500,000 — (6,328)
Interest Rate Swap October 2031 Notes
Pinnacle Bank250,000 — (177)— — — 
Interest Rate Swap October 2031 Notes
Regions Bank250,000 — (177)— — — 
Total Derivatives Designated as Hedges(1)(2)
$11,822 $(70,983)$45,675 $(20,995)
Derivatives not designated as hedges:
Foreign currency forward contract GBPRoyal Bank of Canada£45,425 $61,537 $(60,243)£45,425 $60,102 $(61,205)
Foreign currency forward contract CAD
US Bank National AssociationC$286,242 208,516 (202,638)— — — 
Foreign currency forward contract EURUS Bank National Association€15,980 18,711 (18,473)€58,000 68,219 (67,274)
Total Derivatives not Designated as Hedges
$288,764 $(281,354)$128,321 $(128,479)
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(1)The net fair value of the derivatives designated as hedges is recorded in prepaid expenses and other assets or accrued expenses and other liabilities in the Consolidated Statements of Assets and Liabilities.
(2)The Company’s unsecured notes, that are designated in a qualifying hedging relationship, had carrying value of $6.2 billion and $5.8 billion, net of the related cumulative hedging adjustments that represented an increase (decrease) to the carrying value of the notes of $(57.4) million and $25.5 million as of June 30, 2026 and December 31, 2025, respectively.
The tables below present net unrealized gains and losses on effective interest rate swaps and hedged items included in interest expense for the following periods:
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
Change in Unrealized Gain (Loss) on:Change in Unrealized Gain (Loss) on:
Interest Rate SwapsHedged ItemsNetInterest Rate SwapsHedged ItemsNet
Derivatives designated as hedges:
Interest Rate Swap September 2027 Notes$(2,011)$1,945 $(66)$(5,034)$4,904 $(130)
Interest Rate Swap AUD 2027 Notes2,117 (2,053)64 8,175 (8,395)(220)
Interest Rate Swap May 2028 Notes(3,743)3,496 (247)(7,165)6,647 (518)
Interest Rate Swap June 2028 Notes(4,528)4,463 (65)(8,619)8,489 (130)
Interest Rate Swap January 2029 Notes(5,011)5,001 (10)(7,582)8,918 1,336 
Interest Rate Swap March 2030 Notes(10,923)11,084 161 (16,805)16,878 73 
Interest Rate Swap March 2031 Notes(9,880)9,905 25 (15,257)14,794 (463)
Interest Rate Swap September 2029 Notes(11,140)11,348 208 (18,641)18,909 268 
Interest Rate Swap EUR 2031 Notes4,838 (4,838)— (2,486)2,486 — 
Interest Rate Swaps October 2031 Notes
(354)340 (14)(354)340 (14)
Net Change in Unrealized Gain (Loss) on Interest Rate Swaps and Hedged Items(1)
$56 $202 
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(1)Recorded and recognized as components of interest expense in the Consolidated Statements of Operations with the exception of the net change in unrealized gain (loss) of $123 thousand and $(225) thousand, respectively, for the three and six months ended June 30, 2026, related to the impact of foreign exchange on the AUD 2027 Notes hedge, which is recorded and recognized as a component of the net change in unrealized gain (loss) on the translation of assets and liabilities in foreign currencies in the Consolidated Statements of Operations.

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Interest Rate SwapsHedged ItemsNetInterest Rate SwapsHedged ItemsNet
Derivatives designated as hedges:
Interest Rate Swap September 2027 Notes$2,533 $(2,396)$137 $7,975 $(7,396)$579 
Interest Rate Swap AUD 2027 Notes16,539 (17,549)(1,010)20,089 (21,232)(1,143)
Interest Rate Swap May 2028 Notes
3,574 (3,511)63 3,574 (3,511)63 
Interest Rate Swap June 2028 Notes3,644 (3,850)(206)11,034 (11,327)(293)
Interest Rate Swap January 2029 Notes3,987 (4,018)(31)10,967 (11,119)(152)
Interest Rate Swap March 2030 Notes10,647 (10,726)(79)30,851 (24,895)5,956 
Interest Rate Swap March 2031 Notes7,738 (7,764)(26)22,625 (20,784)1,841 
Interest Rate Swap September 2029 Notes7,356 (7,412)(56)22,242 (22,460)(218)
Net Change in Unrealized Gain (Loss) on Interest Rate Swaps and Hedged Items(1)
$(1,208)$6,633 
_______________
(1)Recorded and recognized as components of interest expense in the Consolidated Statements of Operations with the exception of the net change in unrealized gain (loss) of $(1.0) million and $(1.2) million, respectively, for the three and six months ended June 30, 2025, related to the impact of foreign exchange on the AUD 2027 Notes hedge, which is recorded and recognized as a component of the net change in unrealized gain (loss) on the translation of assets and liabilities in foreign currencies in the Consolidated Statements of Operations.
The table below presents net unrealized gains and losses on derivative instruments not designated as a qualifying hedge accounting relationship recognized by the Company for the following periods:
For the Three Months Ended June 30, 2026For the Six Months Ended June 30, 2026
Derivatives not designated as hedges:
Foreign currency forward contract GBP
$561 $2,400 
Foreign currency forward contract EUR1 (707)
Foreign currency forward contract CAD4,716 5,878 
Total Net Unrealized Gain (Loss)(1)
$5,278 $7,571 
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(1)Recorded and recognized as components of translation of assets and liabilities in foreign currencies and other transactions in the Consolidated Statements of Operations.
For the three and six months ended June 30, 2026, the Company recognized a realized loss of $0.6 million and $2.0 million, respectively, primarily related to the GBP foreign currency forward contracts. The Company did not hold any foreign currency forward contracts for the three and six months ended June 30, 2025.
In connection with the unsecured notes, the Company has received (made) the following periodic payments on the interest rate swaps for the following periods:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2026202520262025
September 2027 Notes$— $— $(1,670)$(2,364)
AUD 2027 Notes - Interest rate swapA$41 A$(213)A$41 A$(213)
AUD 2027 Notes - Cross-currency swap(1)
(8,349)(1,339)(8,349)(1,339)
May 2028 Notes(365)— (365)— 
June 2028 Notes(1,177)(1,039)(1,177)(1,039)
January 2029 Notes— — (612)(2,864)
September 2029 Notes— — (969)(1,341)
March 2030 Notes— — (4,087)(8,101)
March 2031 Notes— — 932 (3,523)
EUR 2031 Notes€(4,888)— €(4,688)— 
October 2031 Notes— — — — 
_______________
(1)For three and six months ended June 30, 2026, the Company also received A$12.3 million and A$12.3 million of periodic payments on the interest rate swaps, respectively.