CLNC - Granite Point Mortgage Trust: The Market Is Skeptical Of Book Value And So Am I

• At first glance Granite Point trades at an attractive price relative to book value; however, the market does not believe book value represents the true value of its loan portfolio.
• Granite Point has significant exposure to the commercial real estate market which is under significant stress now due to Covid-19.
• A sensitivity analysis is presented that shows the importance of truly understanding the impact current trends have on Granite Point's book value.
• Until there is more clarity on book value and positive direction in commercial real estate values, I recommend that investors avoid Granite Point at this point in the commercial real estate cycle.

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