Investors that heeded the Canyon Partners Joshua Friedman's suggestion to short commercial real estate (CRE) and hold cash last March on Bloomberg TV feel like they won the lottery today.
The world's largest credit fund, Canyon, took a $1 billion area position against the CRE sector using the CMBX BBB, a CDS index which tracks the values of bonds backed by various commercial properties. The trade has been the ‘Big Short 2’ for its negative outlook on U.S. retailers and malls.
While investors often short the heavy retail exposed CMBX.6 . . .
Not a subscriber yet? Unlock this article instantly, along with the rest of our premium content and benefits including daily/weekly/monthly newsletters.
A pay-as-you-go plan to get you started
→ Instantly unlock all new and archived articles
→ Daily, weekly and monthly e-mail newsletters
Required for access to AW Research
Get more for less - 20% discount over monthly
→ Everything in Monthly PLUS:
→ Access to articles and data from AW Research
→ AW Annual Investor Compendium – our comprehensive guide to investor activity, with a ranking of the most active investors for the year and profiles of the top global allocators