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  "docSlug": "398831f1133a",
  "documentTitle": "Blackstone Mortgage Trust, Inc. (BXMT)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-12-06 00:00:00",
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  "notes": "The slide uses a 'Recall that' structure to build a case for accounting manipulation.",
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      "text": "Based on our findings, the CECLs on these 2 – 4 Risk Rating loans will eventually increase dramatically as swaps expire and BXMT cannot delay truing up its reserves.",
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      "text": "Recall that the book value net of CECLs of Group B loans is $2.4 billion, compared to our estimated recoveries of $2.0 billion. The average NOI to debt for these borrowings is 6.7% compared to an average spread of ~300 bps.",
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      "text": "Outside of the CLOs, BXMT has nine loans totaling $1.9 billion in value Risk Rated 4, but with no specific CECL reserves. Based on our findings, the CECLs on these 2 – 4 Risk Rating loans will eventually increase dramatically as swaps expire and BXMT cannot delay truing up its reserves.",
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      "text": "Recall that the book value net of CECLs of Group A loans is $1.4 billion, compared to our estimated recoveries of $0.7 billion. The average NOI to debt for these borrowings is 3.6% compared to SOFR of 5.3% and an average spread of ~300 bps.",
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      "text": "CECL reserves: $1.9 billion",
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