Muddy Waters Shorts Blackstone Mortgage Trust, Predicts 'Liquidity Crisis'

Carson Block warns of potential losses up to $4.5 billion due to inability of borrowers to refinance or repay loans.

Carson Block, CEO of Muddy Waters, has taken out a short position in Blackstone Mortgage Trust, predicting a 'liquidity crisis' due to rising interest rates and office vacancies.
Block suggests that a large number of Blackstone's borrowers will be unable to refinance or repay their loans in 2024, potentially leading to losses of between $2.5 billion and $4.5 billion for the REIT.
Blackstone Mortgage Trust's shares fell by up to 9% following the announcement of Muddy Waters' short position.
Blackstone has responded to the report, calling it 'self-interested and misleading', and stating that they are 'well positioned to navigate this environment'.
Block predicts that the REIT will have to cut its dividend severely next year and absorb major losses on some of its loans, many of which went to developers of office properties.