“But if the forward curves come to fruition, we would actually start to see maybe a shift in the spread moving back up a little bit, and I’d say, there’s probably two reasons for that.”

In context

“iver there being VII and then our result ex-VII was 89 basis points of spread. And just -- maybe start with just the sequential decline in the spread with a few basis points and that was generally the rising LIBOR, which is something we highlighted as in our sensitivities that would put pressure on the spread. I think one of the things that was performed better than expected as we did see a recovery in some of our real estate property income investments in the quarter in Q1, so that helped to offset some of that downward pressure that we expected. I’d say, given the upward trend in LIBOR we have already seen in 2Q, we would probably expect kind of that mid single-digit decline to occur that we would have thought to have seen in the first quarter, but to start to see in the second quarter. But if the forward curves come to fruition, we would actually start to see maybe a shift in the spread moving back up a little bit, and I’d say, there’s probably two reasons for that. So one is, so we get these sensitivities at the outlook and then typically the day after they are not as good as they were the day before. Ad so in terms of LIBOR, we talked about a rise in LIBOR having a headwind, at some point that kind of flips to be a positive and that’s probably kind of around the 200-basis-point level and so we are at maybe a little above 130-basis-point today. So, we expect kind of rising LIBOR to continue to pressure us in the second quarter, but if it continues to rise, it would actually begin to provide income. And then the second thing as you point out just kind of the overall increase in rates, it typically comes in 10 -- the benefit of the 10-year comes in at a slower, not as quickly and so, but that will start to emerge over time. So hopefully that helps. Ry”