Monday, 8 April 2019

If owners abandon the malls, these investors are screwed

Commercial mortgage-backed securities could face high losses if struggling mall loans are not refinanced before maturing in 2020. The strongest risk would be if borrowers abandon the malls to avoid foreclosure, according to Bloomberg, citing data from a research note written by Fitch analyst Huxley Somerville. “When a mall goes bad, potential losses can exceed 60 percent of the loan amount,” Somerville wrote, “and the potential for zero recoveries is very real and have already […]



source https://therealdeal.com/2019/04/08/if-owners-abandon-the-malls-these-investors-are-screwed/

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