TPG RE Finance Trust(US:TRTX)2025-10-28 20:12Interest Rate and Loan Portfolio - As of September 30, 2025, the weighted average interest rate floor for the loan portfolio was 2.49%[416] - 99.8% of loans by unpaid principal balance earned a floating rate of interest, with less than 9.0% of floating rate liabilities containing an interest rate floor greater than zero[416] - The weighted average interest rate floor for floating rate mortgage loan liabilities was 0.14% as of September 30, 2025[416] - An immediate increase of 75 basis points in the underlying benchmark interest rate could increase net interest income by $5,379,000[417] Credit and Liquidity Risk - The company is exposed to credit risk, with performance depending on the sponsors' ability to generate adequate cash flows from properties serving as collateral[419] - Liquidity risk is associated with financing longer-maturity investments with shorter-term borrowings, potentially leading to margin call risks[427] - The company may be forced to sell assets to maintain adequate liquidity, which could result in losses[423] Investment Activity and Economic Conditions - Global macroeconomic conditions have caused the company to moderate investment activity in 2024 and throughout 2025[430] Currency and Counterparty Risk Management - The company intends to hedge any currency exposures in a prudent manner, although hedging strategies may not eliminate all currency risk[434] - The company seeks to mitigate counterparty risk by engaging with high credit-quality institutions for cash and financing arrangements[431]