On Dec. 5, 2023, hedge fund Viceroy released a second research report on Arbor after purportedly receiving information from “whistleblowers” regarding distressed Arbor deals and underlying assets.

Viceroy’s report, entitled “Arbor – Jacksonville Case Study”, highlights three multifamily properties in the Jacksonville, Florida area encumbered by Arbor loans, which the hedge fund submits have property values likely below Arbor’s loan balances.

The hedge fund states, “Viceroy’s dive into Arbor’s CLOs suggests its entire loan book is distressed and underlying collateral is vastly overstated. These loans do not qualify for refinancing anywhere, and substantially all mature within the next 18 months.” Viceroy concludes, “We believe Arbor is a donut. $0.00.”