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May 2017   Volume 43, Number 5      
 

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Wall Street Eyes Shopping Malls as Next U.S. Credit Crisis

Wall Street speculators have determined that malls will become the next U.S. credit crisis. It is no secret that many mall properties have struggled for years as Americans increasingly turn to ecommerce. However, these properties are now catching the attention of speculators as analysts are estimating that they will soon collapse as a result of their debts.

As the bad news for mall anchor chains like Macy’s and J.C. Penney continues to increase, bearish bets against commercial mortgage-backed securities are growing. A small but growing number of firms are positioning themselves to profit from a collapse that could trigger a wave of defaults. They are targeting securities that are backed by loans taken out by mall and shopping center operators.

“These malls are dying, and we see very limited prospect of a turnaround in performance,” according to a January report from Alder Hill, which began shorting the securities. “We expect 2017 to be a tipping point.”

As of March 2017, traders had purchased a net $985 million contracts that target the two riskiest types of CMBS, according to the Depository Trust & Clearing Corp. That’s more than five times the purchases in the last three months of 2016.

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In this issue:

12 Surprising Facts about Millennial Homebuyers

Cities Where Over 50 Percent of Millennials Own Homes

Citigroup to Exit Mortgage Servicing Business by 2018

House Flipping Frenzy Returns to U.S. Real Estate

Mortgage Volume Increases by 3.3 Percent as Borrowers Rush to Beat Rising Rates

Survey Shows Smart Home Devices Still in Early Adopter Phase

U.S. Home Prices Hit a 2.5-Year High

Wall Street Eyes Shopping Malls as Next U.S. Credit Crisis

Northeast Has Most New Home Starts

Landscaping Tips to Improve Curb Appeal


 


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