In this special episode, we welcome Principal Dan McNamara and Managing Director Catie McKee (aka the “Queen of Malls”) from MP Securitized Credit Partners. In what was dubbed “the next big short” by some, investors bought credit-default swaps against subordinate bonds in the CMBX 6 index, which has heavy concentrations of shopping mall and retail loans. Catie and Dan are well known for their bet against CMBX 6 and discuss the strategy and execution behind shorting U.S. malls. Episode Notes: The strategy behind shorting U.S. malls and CMBX 6 (2:05) Performance expectations (9:36) Systemic risk in CMBX (13:17) Retailers that may survive the carnage (15:30) The art of visiting malls (19:22) Will more mall owners turn to “jingle mail”? (21:21) Break-even pricing for in-line mall tenants (27:14) Who will play Catie and Dan in a sequel of “The Big Short” (29:29)

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

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