• Jacob Rozenberg

Big Short 2019 - commercial edition

The largest credit-driven hedge fund in the United States has allocated 5% of its NAV (Net Asset Value) to short the commercial mortgage industry. Canyon Partners, with $23 billion under management implemented the short via structured derivatives that offer short exposure to an index of BBB- commercial real estate mortgages (the CMBX). This is essentially a bet against the US consumer.

"You've really seen the limits of monetary and fiscal policy in its ability to extend out a

long boom period." - Josh Friedman, Co-Chairman of Canyon Partners


Recent Posts

See All

Retail Apocalypse

What will Commercial Mortgage Backed Securities do? https://www.businessoffashion.com/articles/news-analysis/a-700-million-commercial-mortgage-backed-security-portfolio-is-on-the-brink-as-malls-collap

Federal Reserve policy

What most US citizens don't understand, is that the taxpayer has been placed on the hook to guarantee most of the Federal Reserve's balance sheet. The manner in which the Federal Reserve system is set