Derivatives, Net

The Company uses forward currency contracts to economically hedge interest and principal payments due under its loans denominated in currencies other than U.S. dollars.

The Company has entered into a series of forward contracts to sell an amount of foreign currency (British pound ("GBP")) for an agreed upon amount of U.S. dollars at various dates through November 2020. These forward contracts were executed to economically fix the U.S. dollar amounts of foreign denominated cash flows expected to be received by the Company related to foreign denominated loan investments.

The following table summarizes the Company's non-designated foreign exchange (“Fx”) forwards as of March 31, 2018:



Type of Derivative	March 31, 2018
	Number of Contracts	Aggregate Notional Amount (in thousands)	Notional Currency	Maturity
Fx Contracts - GBP	31	467,737	GBP	April 2018 - November 2020

The following table summarizes the Company's non-designated Fx forwards as of December 31, 2017:



Type of Derivative	December 31, 2017
	Number of Contracts	Aggregate Notional Amount (in thousands)	Notional Currency	Maturity
Fx Contracts - GBP	24	177,077	GBP	January 2018- November 2020

The Company has not designated any of its derivative instruments as hedges as defined in ASC 815, Derivatives and Hedging and, therefore, changes in the fair value of the Company's derivative instruments are recorded directly in earnings. The following table summarizes the amounts recognized on the condensed consolidated statements of operations related to the Company’s derivatives for the three months ended March 31, 2018 and 2017 ($ in thousands):



		Amount of gain (loss) recognized in income
		Three months ended March 31,
	Location of (Gain) Loss Recognized in Income	2018			2017
Forward currency contracts	Loss on derivative instruments - unrealized	$	(8,859	)	$	(2,883	)
Forward currency contracts	Loss on derivative instruments - realized	(2,177		)	(156		)
Interest rate caps ⁽¹⁾	Gain (loss) on derivative instruments - unrealized	4			(6		)
Total		$	(11,032	)	$	(3,045	)

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(1)	With a notional amount of $38.9 million and $44.2 million at March 31, 2018, and 2017, respectively.

The following table summarizes the gross asset and liability amounts related to the Company’s derivatives at March 31, 2018 and December 31, 2017 ($ in thousands).



	March 31, 2018								December 31, 2017
	Gross Amount of Recognized Liabilities			Gross Amounts Offset in the Condensed Consolidated Balance Sheet		Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheet			Gross Amount of Recognized Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
Interest rate caps	$	—		$	5	$	5		$	—		$	1	$	1
Forward currency contracts	(18,777		)	4,273		(14,504		)	(5,645		)	—		(5,645		)
Total derivative instruments	$	(18,777	)	$	4,278	$	(14,499	)	$	(5,645	)	$	1	$	(5,644	)