Carson Block, Founder of Muddy Waters Capital, makes the case that Blackstone Mortgage Trust, Inc. (BXMT) could be at risk of a liquidity crisis. At the heart of its thesis, Muddy Waters believes that 70%-75% of BXMT’s borrowers may be unable to cover interest expenses. With billions of dollars of interest rate hedges set to terminate next year, the recent decline in commercial real estate values will only exacerbate the issues for troubled borrowers whose loans will mature over the next twelve months. In the end, Blackstone Mortgage Trust will be left to decide between two options – bad or worse – with either leading to a strong probability of a significant reduction to its dividend as soon as the second half of 2024.