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 . . .
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