- Department stores are shutting hundreds of locations, many of which are anchor tenants in malls.
- When the malls lose such huge tenants, they can wind up defaulting on debt that has been bundled with other mall loans into a bond called a CMBS.
- Investors are betting against the CMBS like they did before the housing crisis, and shares of mall real-estate investment trusts are also falling fast. Losses on the loans are also causing a pullback in new lending, creating a downward spiral.
Source: Mall investors battered by stores shutting hurting CMBS market – Business Insider