(Bloomberg) –More than $40 billion of shopping mall mortgages that were bundled into bonds are coming due over the next three years, and much of it will be hard to refinance.
That’s the warning that panelists including John Devaney, a longtime dealer of mortgage bonds and asset-backed securities, sounded at the Structured Finance Association’s industry conference in Las Vegas this week. Across financial markets, investors are betting that people will come back to hotels, offices, and even cruise ships. But in the commercial mortgage backed securities market, investors seem concerned about weaker shopping malls.
