Renowned short seller offers $100,000 wager on trust’s performance
- Carson Block criticizes Blackstone Mortgage Trust at investment conference
- Shares of Blackstone Mortgage Trust down 5% since Block’s critique
- Block claims trust will cut dividend by half as borrowers struggle to refinance
- Block offers side bet to mortgage REIT’s bulls
- 16% of free-trading float sold short
Shares of Blackstone Mortgage Trust have fallen 5% since renowned short seller Carson Block criticized the trust at an investment conference. Block claims that the trust will cut its dividend by half as borrowers struggle to refinance at higher rates. In response to supporters of the trust who claimed Block’s short thesis had been debunked, Block offered a side bet to the trust’s bulls. He challenged a New York realtor to sell one of the commercial properties in the trust’s portfolio at a value equal to Blackstone’s mortgage on the property. If successful, Block would donate $100,000 to a charity of the realtor’s choice. The debate surrounding Blackstone Mortgage Trust is significant, with over 16% of the free-trading float being sold short. The trust’s bulls are betting that interest rates will have eased further by 2024 when a third of the loans in the trust’s portfolio mature. The outcome of this bet will be closely watched.
Public Companies: Blackstone Mortgage Trust (unknown)
Private Companies:
Key People: Carson Block (CEO of Muddy Waters Capital), Ariel Cohen (Residential Real Estate Broker)
Factuality Level: 7
Justification: The article provides information about the criticism of Blackstone Mortgage Trust by Carson Block and the response from the company. It includes statements from both sides and mentions the debate surrounding the trust’s dividend and borrowers’ ability to refinance. However, the article lacks in-depth analysis and does not provide sufficient evidence to support or refute the claims made by Carson Block. It also includes some unnecessary details and digressions, such as the Twitter exchange between Block and a realtor. Overall, the article presents the information but could benefit from more balanced reporting and additional supporting evidence.
Noise Level: 3
Justification: The article provides a brief overview of the criticism faced by Blackstone Mortgage Trust and the response from Carson Block. It includes some quotes and tweets from involved parties, but lacks in-depth analysis or evidence to support the claims made. The article also diverts into unrelated topics such as the impact of COVID-19 on commercial real estate. Overall, the article lacks intellectual rigor and fails to provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Blackstone Mortgage Trust
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial topic of Blackstone Mortgage Trust and its shares. There is no mention of an extreme event.
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