The Industry’s Next Big Short Should Come As No Surprise

Wall Street

Investors have identified malls as the next U.S. economic weak spot and some are positioning to profit from any future collapse.

With more retailers closing shop every day, it is no secret malls are struggling across the country, but investment firms recently took action and made a series of bets against commercial mortgage backed securities, Bloomberg reports. Investment firm Alder Hill Management wagered against the bonds, and short positions on two of the riskiest CMBS segments jumped 50% from a year ago to $5.3B last month.

While experts said these bets are not evidence of a looming financial crisis, it is clear bearish investors are becoming increasingly certain retail mortgage-backed securities are heading for default.

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