Bearish bets against commercial loans jumped 50% year-over-year in February–and with problems piling up for malls, it’s no wonder… As a result of falling sales, retailers are shutting up shop at a rate that has not been seen since the 2008 financial crisis.
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Alder Hill (a hedge fund started by associates of billionaire David Tepper) is bearish on commercial loans and expects 2017 to be a “tipping point.” Morningstar Credit Ratings estimates roughly 40% of the loans due this year won’t be paid.