TPG RE Finance Trust(TRTX) - 2023 Q1 - Quarterly Report

Interest Rate Exposure - As of March 31, 2023, the weighted average interest rate floor for the loan portfolio was 0.94%[389] - The company has $4.9 billion in floating rate mortgage loan assets, with $1.4 billion subject to Compounded SOFR or Term SOFR as the benchmark interest rate[393] - An immediate increase of 25 basis points in the underlying benchmark interest rate could increase net interest income by $2.289 million, while a decrease could reduce it by the same amount[390] - Less than 3.6% of the company's liabilities do not contain interest rate floors greater than zero[389] Credit and Liquidity Risks - The company is exposed to credit risk, with the performance of loans dependent on the sponsors' ability to generate adequate cash flows[391] - The company may need to sell assets to maintain adequate liquidity, especially in a declining market[399] - The company is subject to liquidity risk, particularly associated with financing longer-maturity investments with shorter-term borrowings[398] Macroeconomic Conditions - Global macroeconomic conditions have led to reduced investment activity in Q1 2023, with potential future constraints on investment activity[401] Currency Risk Management - The company intends to hedge any currency exposures prudently, although such strategies may not eliminate all currency risk[405] Capital Raising and Disclosure - The company monitors the debt and equity capital markets to inform decisions on capital raising, which is constrained by the requirement to distribute a significant portion of taxable income annually[400] - The company maintained effective disclosure controls and procedures as of March 31, 2023, ensuring timely reporting and management communication[409] - There were no changes in internal control over financial reporting during the most recently completed fiscal quarter that materially affected the company's reporting[410]