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Some lenders are capital risk-averse because they prioritize the preservation of their principal investment, focusing on minimizing potential losses even if it means accepting lower returns. In contrast, income risk-averse lenders may prioritize steady cash flow and recurring income streams, valuing consistent returns over capital preservation. This difference often stems from their investment strategies, risk tolerance, and the specific financial goals of their portfolios, influencing their approach to lending and risk management.

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2mo ago

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