热门资讯> 正文
Mall of America woes sound CMBS warning - FT
2020-05-21 23:30
The largest largest shopping mall in America missed paying its mortgage payments in April and May, theFinancial Timesreports, citing documents from Wells Fargo.
That signals trouble for how the struggling retail sector may affect the $500B market for commercial mortgage-backed securities. The CMBS market divides loans into bonds with varying levels of risk, which then are sold to investors. Thus, mall owners defaulting on mortgages will flow down to portfolios of pension funds, hedge funds, and other investors.
The Mall of America closed in March in response to COVID-19 and its management notified Wells Fargo, the servicer of its mortgage, about its hardship;FTdidn't know if the mall's owner is seeking forbearance on the loan.
About 7.3% of loans in CMBS deals were 30 more days overdue in mid-May, up from 2.3% in April, according to Trepp, a CMBS data provider.
A senior executive at Triple Five Group, which owns Mall of America, told CNBC last month that without federal aid, "many malls will be headed into default."
The price of lowest-rated portion of the CMBS deal backed by the Mall of America mortgage has sunk to 40 cents on the dollar vs. 59 cents a the end of April and 90 cents at the beginning of the year, according to Bloomberg data.
ETFs: PGZ, JLS, CMBS
Click to subscribe to real-time analytics on PGZ
Now read:The Chemist's Quality Closed-End Fund Report: April 2020 »
