Jingle Mail for Malls: Even Biggest Landlords Walk from Malls as Stores Go Bankrupt, Refuse to Pay Rent, Mall Values Slashed Brutally. But those Shorting Mall CMBS Made a Killing

by Wolf Richter
Wolf Street

Mall meltdown gets messier. But someone’s making money. Here’s how they shorted malls.

An internal hedge fund of private-equity firm Apollo Global Management made over $100 million shorting the commercial mortgage-backed securities index CMBX 6 and other commercial property securities, according to the New York Times. Jason Mudrick, of hedge fund, Mudrick Capital, estimated that he had also made around $100 million in doing so.

The biggie was Carl Icahn. He disclosed on August 10 that his proprietary investment fund had made $1.3 billion in the first half of 2020, by purchasing credit default insurance using the CMBX 6 index, according to Bloomberg.

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