7 unchanged sentences
We also carefully monitor the performance of the loans, as well as external factors that may affect their value.
+Added: Capital Market Risk
+Added: We are exposed to risks related to the debt capital markets, and our related ability to finance our business through borrowings under repurchase obligations or other debt instruments.
+Added: As a REIT, we are required to distribute a significant portion of our taxable income annually, which constrains our ability to accumulate operating cash flow and therefore requires us to utilize debt or equity capital to finance our business.
+Added: We seek to mitigate these risks by monitoring the debt capital markets to inform our decisions on the amount, timing and terms of capital we raise.
+Added: The COVID-19 pandemic has resulted in extreme volatility in a variety of global markets, including the real estate-related debt markets.
+Added: We have and may continue to receive margin calls from our lenders as a result of the decline in the market value of the assets pledged by us to our lenders under our repurchase agreements and warehouse credit facilities, and if we fail to resolve such margin calls when due by payment of cash or delivery of additional collateral, the lenders may exercise remedies including demanding payment by us of our aggregate outstanding financing obligations and/or taking ownership of the loans or other assets securing the applicable obligations and liquidating them at inopportune prices.
Interest Rate Risk
12 unchanged sentences
In contrast, the majority of our financing instruments do not have LIBOR floors.
−Removed: The present of a LIBOR floor on interest-bearing assets coupled with lack of LIBOR floor on interest bearing liabilities allows the portfolio to generate a higher return for a decrease in LIBOR rate compared to increase in LIBOR rate for the LIBOR range presented:
+Added: The presence of a LIBOR floor on interest-bearing assets coupled with lack of LIBOR floor on interest bearing liabilities allows the portfolio to generate a higher return for a decrease in LIBOR rate compared to increase in LIBOR rate for the LIBOR range presented:
Estimated Percentage Change in Interest Income Net of Interest Expense
−Removed: Change in Interest Rates
−Removed: December 31, 2019
−Removed: December 31, 2018
+Added: Change in Interest Rates December 31, 2020 December 31, 2019
(-) 25 Basis Points 2.16 % 3.22 %
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.