| Derivatives and Hedging Activities |
Derivatives and Hedging Activities Currency Forward Contracts We enter into currency forward contracts to help mitigate the impact of changes in foreign currency exchange rates on our investments and financing transactions denominated in currencies other than the U.S. dollar. Despite being economic hedges, we have elected not to treat our foreign currency forwards as hedges for accounting purposes and, therefore, the realized and unrealized gains and losses associated with such instruments are included in gain (loss) on derivative instruments, net in our condensed consolidated statements of comprehensive income. Gain (loss) on foreign currency transactions, net reflects the net financial impact resulting from changes in exchange rates between the time we enter into foreign currency transactions and when they are settled. The following table illustrates the realized and unrealized foreign exchange impact recognized in the condensed consolidated statements of comprehensive income in the three and six months ended June 30, 2026 and 2025, of our loans and secured financing arrangements as well as the offsetting gain (loss) on derivative instruments in the periods: | | | | | | | | | | | | | $ in thousands | Three Months Ended June 30, 2026 | | Six Months Ended June 30, 2026 | | | | | | | | | | Unrealized foreign exchange gain (loss) on loans | $ | (10,326) | | | $ | (25,954) | | | Realized foreign exchange gain (loss) on loans | (60) | | | (60) | | | Unrealized foreign exchange gain (loss) on secured financing facilities | 8,274 | | | 18,173 | | | Realized foreign exchange gain (loss) on secured financing facilities | 48 | | | 48 | | | Gain (loss) on foreign currency transactions, net | (3) | | | (469) | | | Gain (loss) on derivative instruments, net | 1,318 | | | 7,577 | | | Net impact of hedged foreign exchange | $ | (749) | | | $ | (685) | |
| | | | | | | | | | | | | $ in thousands | Three Months Ended June 30, 2025 | | Six Months Ended June 30, 2025 | | | | | | | | | | Unrealized foreign exchange gain (loss) on loans | $ | 25,479 | | | $ | 36,303 | | | Unrealized foreign exchange gain (loss) on secured financing facilities | (20,404) | | | (29,073) | | | | | | | Gain (loss) on derivative instruments, net | (5,362) | | | (7,542) | | | Net impact of hedged foreign exchange | $ | (287) | | | $ | (312) | |
The following tables summarize changes in the notional amount of our currency forward contracts during the six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Local Currency | | | | In thousands | Notional Amount as of December 31, 2025 | | Additions | | Settlement,
Termination,
Expiration
or Exercise | | Notional Amount as of June 30, 2026 | | Notional Amount as of June 30, 2026 | | Buy USD / Sell EUR Forward | € | 49,889 | | | € | 101,175 | | | € | (64,293) | | | € | 86,771 | | | $ | 103,128 | | | Buy USD / Sell GBP Forward | £ | 50,631 | | | £ | 260,345 | | | £ | (149,192) | | | £ | 161,784 | | | $ | 218,079 | | | Buy EUR / Sell USD Forward | € | — | | | € | 64,293 | | | € | (64,293) | | | € | — | | | $ | — | | | Buy GBP / Sell USD Forward | £ | — | | | £ | 180,832 | | | £ | (149,192) | | | £ | 31,640 | | | $ | 42,750 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Local Currency | | | | In thousands | Notional Amount as of December 31, 2024 | | Additions | | Settlement,
Termination,
Expiration
or Exercise | | Notional Amount as of June 30, 2025 | | Notional Amount as of June 30, 2025 | | Buy USD / Sell EUR Forward | € | 39,474 | | | € | — | | | € | (1,717) | | | € | 37,757 | | | $ | 42,876 | | | Buy USD / Sell GBP Forward | £ | 19,417 | | | £ | 33,834 | | | £ | (989) | | | £ | 52,262 | | | $ | 70,372 | |
The table below presents the fair value of our currency forward contracts, as well as their classification on the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | $ in thousands | Fair Value as of | | June 30, 2026 | | December 31, 2025 | | | | | | Derivative Assets | $ | 5,731 | | | $ | 615 | | | Derivative Liabilities | $ | 777 | | | $ | 1,992 | |
The following tables summarize the effect of currency forward contracts reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | $ in thousands | | Three Months Ended June 30, 2026 | | Derivatives not designated as hedging instruments | | Realized gain (loss) on derivative instruments, net | | Unrealized gain (loss), net | | Gain (loss) on derivative instruments, net | | Currency Forward Contracts | | $ | (1,340) | | | $ | 2,658 | | | $ | 1,318 | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ in thousands | | Six Months Ended June 30, 2026 | | Derivatives not designated as hedging instruments | | Realized gain (loss) on derivative instruments, net | | Unrealized gain (loss), net | | Gain (loss) on derivative instruments, net | | Currency Forward Contracts | | $ | 1,246 | | | $ | 6,331 | | | $ | 7,577 | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ in thousands | | Three Months Ended June 30, 2025 | | Derivatives not designated as hedging instruments | | Realized gain (loss) on derivative instruments, net | | Unrealized gain (loss), net | | Gain (loss) on derivative instruments, net | | Currency Forward Contracts | | $ | (4) | | | $ | (5,358) | | | $ | (5,362) | |
| | | | | | | | | | | | | | | | | | | | | | $ in thousands | | Six Months Ended June 30, 2025 | | Derivatives not designated as hedging instruments | | Realized gain (loss) on derivative instruments, net | | Unrealized gain (loss), net | | Gain (loss) on derivative instruments, net | | Currency Forward Contracts | | $ | 113 | | | $ | (7,655) | | | $ | (7,542) | |
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