TPG RE Finance Trust(US:TRTX)2026-02-17 21:27Interest Rate Risk - As of December 31, 2025, the weighted average interest rate floor for the loan portfolio was 2.66%[497] - 99.8% of loans by unpaid principal balance earned a floating rate of interest, with less than 10.0% of floating rate liabilities containing an interest rate floor greater than zero[497] - An immediate increase of 25 basis points in the benchmark interest rate could result in a net interest income change of $1,950, while a 75 basis point increase could lead to a change of $6,073[498] Credit 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[500] Liquidity Risk - Liquidity risk is associated with financing longer-maturity investments with shorter-term borrowings, which may lead to margin call risks[508] - The company is required to distribute a significant portion of taxable income annually, constraining the ability to accumulate operating cash flow[510] - The company may need to sell assets to maintain adequate liquidity, especially during market disruptions[509] Currency Risk - Currency risk may arise from holding assets denominated in foreign currencies, impacting asset valuation and income distributions[513] - The company intends to hedge currency exposures, but such strategies may not eliminate all currency risk[514] Market Volatility - The market values of commercial mortgage assets are subject to volatility due to various economic factors, which could adversely affect the company's performance[507]