DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

6. DERIVATIVE INSTRUMENTS

The Company enters into derivative instruments from time to time to help mitigate its foreign currency and interest rate risk exposures.

Foreign Currency Forward Contracts

Certain information related to the Company’s foreign currency forward derivative instruments as of December 31, 2024 and 2023 is presented below.


	As of December 31, 2024
Derivative Instrument	Notional Amount		Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Foreign currency forward contract	CAD	240	$	184	$	(179)	Other Assets
Foreign currency forward contract	CAD	188	133		(131)		Other Assets
Foreign currency forward contract	€	182	195		(189)		Other Assets
Foreign currency forward contract	£	133	168		(166)		Other Assets
Foreign currency forward contract	€	103	109		(105)		Other Assets
Foreign currency forward contract	NOK	97	96		(96)		Other Assets
Foreign currency forward contract	£	74	95		(93)		Other Assets
Foreign currency forward contract	NZD	68	41		(38)		Other Assets
Foreign currency forward contract	NOK	63	6		(6)		Other Assets
Foreign currency forward contract	AUD	21	14		(14)		Other Assets
Total			$	1,041	$	(1,017)


	As of December 31, 2023
Derivative Instrument	Notional Amount		Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Balance Sheet Location of Net Amounts
Foreign currency forward contract	CAD	321	$	234	$	(239)	Accounts payable and other liabilities
Foreign currency forward contract	€	190	200		(207)		Accounts payable and other liabilities
Foreign currency forward contract	£	172	209		(217)		Accounts payable and other liabilities
Foreign currency forward contract	NZD	71	41		(45)		Accounts payable and other liabilities
Foreign currency forward contract	$	10	9		(9)		Accounts payable and other liabilities
Foreign currency forward contract	AUD	10	7		(7)		Accounts payable and other liabilities
Foreign currency forward contract	CAD	4	3		(3)		Accounts payable and other liabilities
Total			$	703	$	(727)

As of December 31, 2024 and 2023, the counterparties to each of the Company’s foreign currency forward contracts were Canadian Imperial Bank of Commerce or Royal Bank of Canada.

Net realized and unrealized gains and losses on derivative instruments not designated as a qualifying hedge accounting relationship recognized by the Company for the years ended December 31, 2024, 2023 and 2022 is in the following location in the consolidated statements of operations:


		For the Years Ended December 31,
Derivative Instrument	Statement Location		2024		2023		2022

Foreign currency forward contract	Net realized gains (losses) from foreign currency and other transactions		$	(1)	$	(13)	$	62
Foreign currency forward contract	Net unrealized gains (losses) from foreign currency and other transactions		$	51	$	(5)	$	(9)

Interest Rate Swaps

In connection with certain of the unsecured notes issued by the Company, the Company has entered into interest rate swaps to more closely align the interest rates of such liabilities with the Company’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swaps, the Company receives a fixed interest rate and pays a floating interest rate of one-month SOFR plus an applicable spread, as disclosed below. The Company designated these interest rate swaps and the associated unsecured notes as qualifying fair value hedge accounting relationships. As of December 31, 2024 and 2023, the counterparty to all of the Company’s interest rate swaps was Wells Fargo Bank, N.A. Certain information related to the Company’s interest rate swaps as of December 31, 2024 is presented below.


Description	Hedged Item	Company Receives		Company Pays	Maturity Date	Notional Amount
Interest rate swap	January 2027 Notes	7.000	%	SOFR +2.581%	January 15, 2027	$	900
Interest rate swap	March 2029 Notes	5.875	%	SOFR +2.023%	March 1, 2029	$	1,000
Interest rate swap	July 2029 Notes	5.950	%	SOFR +1.643%	July 15, 2029	$	850

See Note 5 for more information on the January 2027 Notes, the March 2029 Notes and the July 2029 Notes. See Note 16 for a subsequent event relating to an additional interest rate swap in connection with an additional issuance of unsecured notes.

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, with the changes in the fair value of each being recorded in interest expense. The net loss related to the fair value hedges was approximately $0 for the year ended December 31, 2024, which is included in “interest and credit facility fees” in the Company’s consolidated statement of operations. The net gain related to the fair value hedge was approximately $0 for the year ended December 31, 2023, which is included in “interest and credit facility fees” in the Company’s consolidated statement of operations. The balance sheet impact of fair valuing the interest rate swaps as of December 31, 2024 and 2023 is presented below:


	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)	$	900	January 15, 2027	$	4	$	—	Other assets
Interest rate swap(2)	$	1,000	March 1, 2029	—		(9)		Accounts payable and other liabilities
Interest rate swap(3)	$	850	July 15, 2029	7		—		Other assets
Total				$	11	$	(9)

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(1)The asset related to the fair value of the interest rate swaps was offset by a $4 increase to the carrying value of the January 2027 Notes.

(2)The liability related to the fair value of the interest rate swap was offset by a $9 decrease to the carrying value of the March 2029 Notes.

(3)The asset related to the fair value of the interest rate swap was offset by a $7 increase to the carrying value of the July 2029 Notes.


	As of December 31, 2023
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)	$	900	January 15, 2027	$	15	$	—	Other assets

Total				$	15	$	—

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(1)The asset related to the fair value of the interest rate swaps was offset by a $15 increase to the carrying value of the January 2027 Notes.