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  "documentTitle": "Blackstone Mortgage Trust, Inc. (BXMT)",
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  "authorName": "Muddy Waters Research",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-12-06 00:00:00",
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  "notes": "The slide uses the 'extending and pretending' idiom to describe loan modifications.",
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      "text": "BXMT has been \"extending and pretending\" by modifying troubled loans that are already otherwise in default – extending maturities and allowing them to PIK.",
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      "text": "Many borrowers have only been able to stay current through the unprecedented rate hikes of 2022-2023 because of the swaps. BXMT has also been giving investors a false sense of security through unrealistic (and subjective) Risk Ratings and CECL (Current Expected Credit Loss) provisioning. BXMT has been \"extending and pretending\" by modifying troubled loans that are already otherwise in default – extending maturities and allowing them to PIK.",
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      "text": "We believe that at least nine loans totaling $1.6 billion (~6.3% of BXMT's net book value) have already been modified through Q3 2023. We understand that already ~4% to ~5% of interest income is PIK.",
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      "text": "1 Per discussions with BXMT Investor Relations.",
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      "text": "Why Hasn't BXMT Yet Shown Signs of Distress?",
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