Derivative and Hedging Instruments

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE AND HEDGING INSTRUMENTS

Interest Rate Caps. We utilize interest rate cap agreements to manage the interest rate risk on certain secured financings. The following tables provide the terms of our interest rate cap agreements that were in effect as of March 31, 2024 and December 31, 2023:


(Dollars in millions)
As of March 31, 2024
Facility Amount		Facility Name	Purpose	Start	End	Notional		Cap Interest Rate (1)
$	300.0	Warehouse Facility IV	Cap Floating Rate	05/2023	11/2024	$	300.0	7.50	%
200.0		Warehouse Facility V	Cap Floating Rate	04/2023	01/2026	83.0		5.44	%
200.0		Warehouse Facility VIII	Cap Floating Rate	09/2022	09/2025	200.0		5.42	%
100.0		Term ABS 2021-1	Cap Floating Rate	04/2023	06/2024	18.8		5.46	%
200.0		Term ABS 2022-2	Cap Floating Rate	12/2022	06/2024	200.0		6.50	%


(Dollars in millions)
As of December 31, 2023
Facility Amount		Facility Name	Purpose	Start	End	Notional		Cap Interest Rate (1)
$	300.0	Warehouse Facility IV	Cap Floating Rate	05/2023	11/2024	$	300.0	7.50	%
200.0		Warehouse Facility V	Cap Floating Rate	04/2023	01/2026	94.0		5.44	%
200.0		Warehouse Facility VIII	Cap Floating Rate	09/2022	9/2025	200.0		5.42	%
100.0		Term ABS 2021-1	Cap Floating Rate	04/2023	06/2024	37.5		5.46	%
200.0		Term ABS 2022-2	Cap Floating Rate	12/2022	06/2024	200.0		6.50	%

(1)Rate excludes the spread over the corresponding benchmark rate.

The interest rate caps have not been designated as hedging instruments. As of March 31, 2024 and December 31, 2023, the interest rate caps had a fair value of $0.1 million, as the capped rates were above market rates.