Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Vernon Plack BB&T Capital Markets. Please state your question.
Vernon Plack – BB&T Capital Markets
Thanks very much. And, this question is for Mark. Mark, could you tell me what the commercial paper rate that your lender’s currently charging you?
Mark Perrigo
Commercial paper is about a little over 2.5%.
Vernon Plack – BB&T Capital Markets
Okay, thanks very much.
Operator
Thank you. (Operator Instructions). Our next question comes from Wayne Silby (ph). Please state your question.
Wayne Silby
Hi David, long time. My question has to do with the fair value accounting versus mark to model versus looking at what other syndicated loans are selling for at distressed prices or market transactions. Then, you seem to indicate that you actually look at actual transactions in the marketplace to mark to those distressed sale prices. Did I hear that correctly so this is kind of a mark-to-market as opposed to a fair value kind of portfolio pricing?
David Dullum
Well, you did hear correctly. We come at the marketplace from two directions. One, of course, is that on the senior syndicated loans, we can call off the folks that make a market in that and get an indicative bid and use that many times in our evaluation.
Also, we have Standards & Poor’s evaluation service. They also provide a review. They give us a value on some of our loans, and we use that. And I’m pretty sure, I don’t know that absolutely, that they use the transactions that are going on in the marketplace or senior syndicated loans.
And for our regular loans, they have their own model that they use and give us a value on it. I’m not sure there’s a distinguishment between fair value and market price where you have bids and ads are there for securities.
The SEC’s pretty adamant that you use market prices, that is bid and ask prices, when you can find them. And then if you can’t find them, you have to use something else. But I hope that answers your question.
Wayne Silby
Thank you.
David Dullum
Any follow-up Wayne?
Operator
So we have another question from Jon Arfstrom with RBC Capital Markets. Please state your question.
Jon Arfstrom – RBC Capital Markets
Thanks. Good morning, guys.
David Dullum
Good morning.
Jon Arfstrom – RBC Capital Markets
Question for you on a comment you made about an increased appetite potentially on the mezzanine and co-equity investments, could you talk a little bit about how you compare and contrast that against control investing and how large do you think that could get the percentage of the portfolio?
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