Short-selling hedge fund Muddy Waters has taken a short position in Blackstone Mortgage Trust (BXMT), a publicly traded REIT, citing concerns about the impact of economic conditions on commercial real estate. Muddy Waters expects BXMT to cut its dividend in the second half of 2024, with potential cuts of 50% or more depending on current rates. The fund also anticipates loan losses of $2.5 billion to $4 billion, with significant portions of borrowers' collateral being underwater. Additionally, Muddy Waters highlights the termination of interest rate swaps on a significant portion of BXMT's loan book next year, potentially leading to challenges for US borrowers in covering rates and spreads. Short seller Carson Block, the founder of Muddy Waters, discussed the short position in various podcasts, including CNBC's The Exchange. The news has led to a significant drop in Blackstone's Mortgage Trust shares, falling as much as 9% on Wednesday.
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Hedge fund Muddy Waters shorts Blackstone mortgage trust https://t.co/kpmSxYKwQp
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Muddy Waters is short Blackstone Mortgage Trust REIT https://t.co/AHHfAfe0qO https://t.co/h5CZnmjJYu
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.@muddywatersre is out with a new short position. Blackstone Mortgage, $BXMT. https://t.co/yfSukHmKgV
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Muddy Waters is short Blackstone Mortgage Trust REIT https://t.co/pHxWl5RW1n https://t.co/E0JkMGbZrU
"Here Comes The Cliff!": Carson Block Shorts Blackstone Mortgage REIT As 'Liquidity Crisis' Risks Mount https://t.co/Firg4TD7Xg
Hedge fund Muddy Waters shorts Blackstone mortgage trust https://t.co/uFPsAfbDfr
Carson Block is shorting $BXMT, Blackstone Mortgage Trust Sees losses on loans growing from 2.5bn to 4.5bn and a dividend cut in 1H24
Carson Block is shorting $BXMT, Blackstone Mortgage Trust
Muddy Waters is short Blackstone Mortgage Trust REIT https://t.co/iyz0Q9z70Y https://t.co/ketnw6TTrG
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⚠️ MUDDY WATERS IS SHORT BLACKSTONE MORTGAGE TRUST REIT Blackstone's Mortgage Trust shares fell as much as 9% on Wednesday after short-selling hedge fund Muddy Waters said that it had taken out a short position in Blackstone's real estate investment trust. https://t.co/WJ9eM8w050
people listen to this guy for financial advice https://t.co/5MVhKdCRER
We expect $BXMT to begin cutting its div in H2 2024. Cuts will depend on current rates, but at current SOFR, we expect cuts of 50%+. https://t.co/roRdKNzqXP https://t.co/5lmKd2Ajpo
We believe $BXMT will ultimately lose ~$2.5B-$4B in loan losses - net of existing provisions! In CLOs, we see ~1/2 of borrowers' collateral is ~15%-20% under water, ~1/4 of collateral is ~50% under water. CLOs apparently represent rest of US loan book. https://t.co/roRdKNzqXP https://t.co/J3UUc2esw6
$BXMT has appeared steady until now bc its borrowers swapped away rate exposure. We estimate swaps on $16B of $23B loan book terminate next year. From CLOs, we extrapolate ~25% US borrowers won't cover SOFR, ~50% won't cover their spreads. https://t.co/roRdKNzYNn https://t.co/MyJeX4odbz
Carson Block is short Blackstone Mortgage Trust, saying the publicly traded REIT is exposed to a perfect storm of economic conditions hitting commercial real estate https://t.co/wt2CegA3vB
Carson Block is short Blackstone Mortgage Trust, saying the publicly traded REIT is exposed to a perfect storm of economic conditions hitting commercial real estate https://t.co/tSWvqsuJHg
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