Famed Short Seller Carson Block Flags 'Cover Your A**' Situation As Muddy Waters Bets Against Blackstone Mortgage Trust
Portfolio Pulse from Adam Eckert
Muddy Waters Research, led by Carson Block, has taken a short position on Blackstone Mortgage Trust Inc (BXMT), predicting a significant dividend cut and potential liquidity crisis starting in 2024 due to $16 billion of interest rate swaps ending. Muddy Waters estimates losses could reach $2.5 to $4.5 billion, potentially wiping out BXMT's market cap. Blackstone Mortgage refuted the claims, citing a strong liquidity position. BXMT's stock dropped 6.09% following the announcement.
December 06, 2023 | 8:02 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Muddy Waters Research has shorted BXMT, predicting a dividend cut and liquidity crisis that could lead to significant losses, potentially erasing the company's market cap. BXMT's stock fell 6.09% after the announcement.
The short position taken by Muddy Waters and the subsequent media coverage, including the interview with Carson Block, are likely to shake investor confidence in BXMT. The detailed report by Muddy Waters outlining potential future financial troubles for BXMT, coupled with the immediate impact on stock price, suggests a negative short-term impact on the stock.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100