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Risks
1. Interest Rate Risk: As an investor in KKR Real Estate Finance Trust Inc., you are subject to interest rate risk, which is the risk that the value of your investment will decrease if market interest rates increase relative to the rates when you purchased the security.
2. Credit Risk: If KKR Real Estate Finance Trust Inc. or any of the companies that it lends to defaults on repayment of the loan, then investor’s investment will suffer a loss.
3. Liquidity Risk: If there is limited demand for KKR Real Estate Finance Trust Inc. shares, then an investor may not be able to sell the position quickly to access funds.
4. Risk of Capital Loss: If the value of KKR Real Estate Finance Trust Inc. decreases, investors will suffer a capital loss.
5. Risk of Unfavorable Terms: KKR Real Estate Finance Trust Inc. may enter into deals with unfavorable terms which may negatively impact investor returns.