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  "docSlug": "398831f1133a",
  "documentTitle": "Blackstone Mortgage Trust, Inc. (BXMT)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-12-06 00:00:00",
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  "pageNumber": 11,
  "pageCount": 51,
  "prevPage": 10,
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  "slideType": "problem_statement",
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  "density": "balanced",
  "nDataPoints": 6,
  "notes": "The slide uses a logical chain to demonstrate that current NOI/Debt ratios are insufficient to cover the implied interest rates once swaps expire.",
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      "kind": "callout",
      "text": "We estimate that ~$16 billion of these swaps will terminate in 2024.",
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      "text": "BXMT's loans are interest-only floating rate (e.g., 30-day LIBOR/SOFR + Spread). If in 2021, the borrower opened a swap through the initial maturity on a typical three-year loan (with two one-year extension options) when 30-day SOFR averaged 0.04%, the swap counterparty has been paying the ~530 bps difference between current SOFR (5.3%) and the initial rate. The weighted average spread on a BXMT loan is ~343 bps, meaning that without swaps, the typical borrower would be paying ~8.7% now. The average borrower NOI / Debt in the CLO (see infra) is ~6.5%.",
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      "text": "interest rate: 8.7%",
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      "kind": "title",
      "text": "Absent Swaps, Many Borrowers Can't Service BXMT Debt",
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      "evidence": "The slide links interest rate hikes to swap expirations and compares the resulting interest burden to borrower NOI/Debt ratios.",
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      "arcName": "Overcoming the Monster",
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      "evidence": "The document reveals contradictions in BXMT's financials and operations, including the manipulation of risk ratings and CECLs.",
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