2024-04-13 08:19:51 ET
Summary
- Blackstone Mortgage Trust, Inc.'s asset base is geographically and sector-diversified, but we believe negative duration and convexity effects could emerge later this year.
- Although short-term U.S. inflation remains resilient, the long-term trend suggests yields will eventually drop in late 2024. Moreover, BXMT's other operating regions face the same problems.
- 'Tied-up' capital could be an issue as sustained economic risk introduces excess reserve requirements and likely limits Blackstone Mortgage Trust's profit capacity.
- The vehicle's funding rates might improve in due course with term loans outweighing potential CLO headwinds.
- Blackstone Mortgage Trust's price-to-book value and dividend profile aren't terrible. However, we think capital would be more productive elsewhere.
Let's drift into the mortgage arena and discuss what's waiting in the wings for the Blackstone Mortgage Trust, Inc. (NYSE: BXMT ) . ...
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For further details see:
Blackstone Mortgage Trust: Think Twice Before Chasing Dividends