Interest Rate Exposure
According to Stuart Aronson, WhiteHorse Finance's Chief Executive Officer in its recent earnings call, stated "During the fourth quarter, we maintained our focus on strong credit quality and successfully originated 13 new first-lien loans.” These 13 new closed deals (put on the books pre-Coronavirus outbreak) were closed in the then prevailing hyper-competitive/”easy” credit environment – which was associated with generally looser covenants and lower yields. Thus, the last quarter of transaction activity at WhiteHorse could serve as a drag on future NII.
The portfolio at December 31, 2019 consisted of 66 positions