Happy to explain. Firstly, they don't have leverage which magnifies risk in mreits.
Secondly, because of the nature of their investments ie, holdings of mezzanine debt and mortagages secured on real estate, etc they will benefit from the improvement in the commercial real estate market but mezzanine debt and the like is less impacted by the interest rate cycle. You will note that many of their investments were bought at less than 100% on the dollar. Basically, as the economy improves, so does the quality of their investments.
CXS has minimum borrowing, meaning it does not rely on getting in interest spread. CXS does not borrow short and lend long; it simply lends long.
For most non-agency reits, a rising interest rate environment is not a big problem even they borrow short and lend long, because the net interest margin is large enough to cushion the rise in interest expense. Only a very rapid rising interest rate scenario can hurt them.