Sorry-- re the 4%, it is a tax item in the same sense as any of nly's funding costs: it reduces taxable income to nly, so reduces the amount of distributable income required under reit regulations. Don't forget, nly does not pay income taxes as long as it distributes "90%" (actually, this is not quite right, but works for us here) of its taxable income. The 4% reduces the amount nly will give you in dividends. But the 4% is on $600m, and we are looking at receiving dividends on $600m x 5.7 (leverage) x 2.35% (spread:my guess) less 4% on $600m which is more than the 4% on the 600m. I hope I am making sense here.