Some see opportunity in securities tied to lower-quality malls during the wave of retail closures
By Esther Fung | The Wall Street Journa;
The next big short opportunity is in the debt of dying shopping malls, according to one prominent New York hedge fund.
Alder Hill Management on Jan. 30 issued a report to its investors making the case against commercial mortgage-backed securities tied to retail property, saying it expects more defaults to occur in lower-quality malls during the wave of retail closures, including department stores.
“We expect 2017 to be a tipping point for the pace of retail store closures and rent reductions,” said the report, reviewed by The Wall Street Journal.
