TPG RE Finance Trust, Inc. (NYSE:TRTX) Q2 2023 Earnings Conference Call August 2, 2023 9:00 AM ET

Company Participants

Deborah Ginsberg - VP, General Counsel & Corporate Secretary

Doug Bouquard - CEO & Director

Robert Foley - CFO

Conference Call Participants

Stephen Laws - Raymond James & Associates

Richard Shane - JPMorgan Chase & Co.

Sarah Barcomb - BTIG

Steven Delaney - JMP Securities

Derek Hewett - Bank of America Merrill Lynch

Operator

Good morning, and welcome to the TPG RE Finance Trust Second Quarter 2023 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Deborah Ginsberg, General Counsel, Vice President and Secretary. Please go ahead.

Deborah Ginsberg

Good morning, and welcome to TPG Real Estate Finance conference call for the second quarter 2023. I'm joined today by Doug Bouquard, Chief Executive Officer; and Bob Foley, Chief Financial Officer. Doug and Bob will share some comments about the quarter, and then we'll open up the call for questions.

Yesterday evening, we filed our Form 10-Q and issued a press release and earnings supplemental with the presentation of our operating results, all of which are available on our website in the Investor Relations section. I'd like to remind everyone that today's call may include forward-looking statements, which are uncertain and outside of the company's control. Actual results may differ materially.

For a discussion of some of the risks that could affect results, please see the Risk Factors section of our 10-Q and 10-K. We do not undertake any duty to update these statements, and we will also refer to certain non-GAAP measures on this call. And for reconciliations, you should refer in the press release and our 10-Q. With that, it's my pleasure to turn the call over to Doug Bouquard, Chief Executive Officer.

Doug Bouquard

Thank you, Deborah. Good morning, and thank you for joining our call. Over the past quarter, the market has begun to reflect a greater livelihood of a soft landing as the Federal Reserve has been successful in dampening inflation without curing a recession.

Over the past 16 months, front-end interest rates have increased from nearly 0 to their highest level seen in 22 years. Despite the Fed's restrictive policy in place, we should acknowledge a few noteworthy takeaways. First, the labor market remains incredibly strong; second, the residential housing market has remained resilient and positive national price appreciation despite mortgage rates hovering around 7%; third, credit spreads in the corporate credit market have tightened dramatically and have almost fully retraced to their pre-Fed hike levels; and lastly, the U.S. public equity market has rallied nearly 18% year-to-date at the S&P 500 quickly approaches an all-time high.