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Derivatives | 6 Months Ended
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Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | 7. DERIVATIVES From time to time, the Company enters into foreign currency forward contracts to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies. The Company enters into interest rate swaps to more closely align the interest rates of some of the Company’s fixed rate liabilities with its investment portfolio, which predominately consists of floating rate loans. In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or a similar agreement with its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Company and a counterparty that governs bilateral uncleared OTC derivatives, including foreign currency forward contracts, as well as interest rate swaps, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty. The Company minimizes counterparty credit risk by only entering into agreements with counterparties that it believes to be in good standing and by monitoring the financial stability of those counterparties. The table below presents the average notional amounts, as an indicator for volume, for each derivative type:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | June 30, 2026 |  |  | June 30, 2025 |  |  | June 30, 2026 |  |  | June 30, 2025 |
Foreign Currency Forward Contracts |  | $ | 4,357 |  |  | $ | 2,661 |  |  | $ | 3,702 |  |  | $ | 2,661 |
Interest Rate Swaps |  | $ | 1,200,000 |  |  | $ | — |  |  | $ | 1,142,857 |  |  | $ | — |
The table below presents the gross fair value of derivative contracts by major product type, the amounts of counterparty and cash collateral netting in the Consolidated Statements of Assets and Liabilities.
June 30, 2026 |
|  | Derivative Assets |  |  | Derivative Liabilities |  |  |  |  |  |  |  |  |  |
Counterparty |  | Foreign currency forward contracts |  |  | Interest rate swaps |  |  | Total |  |  | Foreign currency forward contracts |  |  | Interest rate swaps |  |  | Total |  |  | Net Derivative Asset (Liabilities) |  |  | Cash collateral netting(1) |  |  | Net Amount(2) |
Bank of America, N.A. |  | $ | 64 |  |  | $ | — |  |  | $ | 64 |  |  | $ | (2 | ) |  | $ | (11,517 | ) |  | $ | (11,519 | ) |  | $ | (11,455 | ) |  | $ | 11,455 |  |  | $ | — |
BNP Paribas |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (4,933 | ) |  | $ | (4,933 | ) |  | $ | (4,933 | ) |  | $ | 4,933 |  |  | $ | — |
December 31, 2025 |
|  | Derivative Assets |  |  | Derivative Liabilities |  |  |  |  |  |  |  |  |  |
Counterparty |  | Foreign currency forward contracts |  |  | Interest rate swaps |  |  | Total |  |  | Foreign currency forward contracts |  |  | Interest rate swaps |  |  | Total |  |  | Net Derivative Asset (Liabilities) |  |  | Cash collateral netting(1) |  |  | Net Amount(2) |
Bank of America, N.A. |  | $ | — |  |  | $ | 607 |  |  | $ | 607 |  |  | $ | (252 | ) |  | $ | (3,570 | ) |  | $ | (3,822 | ) |  | $ | (3,215 | ) |  | $ | 3,215 |  |  | $ | — |
(1) Amount excludes excess cash collateral received or paid, if any. (2) Net amount represents the net amount due (to) from counterparty in the event of a default based on the contractual offset rights under the agreement. Net amount excludes any over-collateralized amounts. As the Company does not utilize hedge accounting for foreign currency forward contracts, the effect of transactions in foreign currency forward contracts on the Consolidated Statements of Operations was as follows:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | June 30, 2026 |  |  | June 30, 2025 |  |  | June 30, 2026 |  |  | June 30, 2025 |
Net realized gain (loss) on foreign currency forward contracts |  | $ | (20 | ) |  | $ | — |  |  | $ | (273 | ) |  | $ | — |
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts |  |  | 11 |  |  |  | (181 | ) |  |  | 314 |  |  |  | (270 | )
Total net realized and unrealized gains (losses) on foreign currency forward contracts |  | $ | (9 | ) |  | $ | (181 | ) |  | $ | 41 |  |  | $ | (270 | )
Hedging The Company designated its interest rate swaps as the hedging instrument in a qualifying fair value hedging relationship for which it applies hedge accounting. For the interest rate swaps designated in qualifying fair value hedging relationships, the gains and losses on these interest rate swaps and the changes in the fair value of the hedged liabilities attributable to the risk being hedged (i.e. interest rate risk) are included in Interest and other debt expenses in the Consolidated Statements of Operations. The table below presents the impact to the Consolidated Statements of Operations from derivative assets and liabilities designated in a qualifying hedge accounting relationship:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | June 30, 2026 |  |  | June 30, 2025 |  |  | June 30, 2026 |  |  | June 30, 2025 |
Interest rate swaps |  | $ | (8,451 | ) |  | $ | — |  |  | $ | (13,487 | ) |  | $ | — |
Hedged liabilities |  |  | 8,487 |  |  |  | — |  |  |  | 13,595 |  |  |  | — |
The table below presents the carrying value of unsecured borrowings that are designated in a qualifying fair value hedging relationship and the related cumulative hedging adjustments (increase/(decrease)) from current and prior hedging relationships included in such carrying values:
|  | June 30, 2026 |  |  | December 31, 2025 |
|  | Carrying Value |  |  | Cumulative hedging adjustments |  |  | Carrying Value |  |  | Cumulative hedging adjustments |
Hedged liabilities |  | $ | 1,170,667 |  |  | $ | (16,556 | ) |  | $ | 788,949 |  |  | $ | (2,961 | )

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