Big speculators, including hedge funds, have boosted short exposure to 10-year US Treasury futures to a record 939,351 contracts, indicating they are confident the bond market will start falling again. That could happen as early as Wednesday, when the latest data on consumer prices are made public.
Crate & Barrel-owned children's furniture concept Land of Nod has closed all three of its Illinois stores, along with locations in Seattle and Natick, Mass. The closures leave the brand with just one retail store and one outlet location in California.
Some retail REITs are offering dividend yields above 15%, which are starting to appeal to investors. "Our dividend is an attractive component of our overall value proposition for prospective investors and an important way we return value to our shareholders," says CBL & Associates CEO Stephen Lebovitz.
Ventas is seeking to refinance about $1 billion of $11.28 billion in total debt in anticipation of rising interest rates and to push out maturities. This strategy will reduce refinancing risk for any given year, CFO Robert Probst says.
The Mortgage Bankers Association expects a decline to $549 billion in total commercial and multifamily mortgage originations in 2018 -- a 3% dip from last year -- and expects that dollar amount to be about the same in 2019. The drop follows a 15% increase in 2017 and is partly due to the declining number of maturities, as 2017 marked the official end of the so-called "wall of maturities," noted MBA's Jamie Woodwell.
Vornado Realty Trust has recategorized the way it accounts for the 49.5% stake it owns in 666 Fifth Ave. in Manhattan because it doesn't have long-term plans to keep the asset, according to the REIT's annual report.
Sources say Vornado is likely to divest its share within a year, possibly through a sale or a lender giveback.
As new retail space opens in the coming months, existing larger-format retail space will struggle under the pressure, states a report from BIS Oxford Economics. Consumer spending is weaker, and rising vacancies will create an imbalance.
The US Court of Appeals for the District of Columbia Circuit has ruled managers of collateralized loan obligations are exempt from a post-crisis risk-retention requirement that issuers hold on to 5% of securities sold to investors. The ruling is expected to increase demand for highly leveraged corporate loans.
The US inflation report due this week might have investors reassessing the value of equities and corporate bonds. The big fear is "we get a big [consumer price index] print and it validates the narrative that inflation is coming back and the [Federal Reserve] is going to have to move faster," says Stephen Bartolini of T. Rowe Price.