CMBX widens as retailers report dismal earnings

John Lewis 230x150 department store
By Alexander Saeedy
20 Aug 2018

CMBX spreads widened over the past week on the back of negative retail headlines from retailers such as JCPenney and Macy’s, marking the latest turn of the screw in what some have called this credit cycle’s Big Short.

As the retail sector has struggled in the face of growing online competition, CMBX indices that reference vintages of CMBS deals with heavy exposure to retail properties have been targeted for short trades by hedge funds.

That trade has yet to bear fruit in the more than three ...

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