American Dream Bonds Up 25% as Buyers Eye Mall Rebound


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The American Dream mall in East Rutherford, New Jersey (Getty)

The American Dream mall in East Rutherford, New Jersey (Getty)

City bonds issued for the American Dream shopping center in 2017 were shaken as the project affected a pandemic and other problems, but investors have accumulated them in recent months.

As customers gradually return to the New Jersey shopping and entertainment complex, longest-maturity bonds issued by the owner of the Triple Five Group shopping center have returned 25.8 percent this year, Bloomberg News reported.

American Dream bonds, which traded at 87 cents on the dollar with a yield of 8.2 percent in September, traded at 111.7 cents on Thursday with a yield of 4.94 percent. This is a gain of 28.3 percent for securities that are due in 2050 and have a 7 percent coupon.

The mall, which reopened in October, reported revenue of $ 54 million in 2020, with $ 39 million raised in the fourth quarter.

“As more stores open and the vaccine is introduced, we think closed-mall traffic should bounce back, with American Dream levels continuing to rise compared to comparable malls,” said a survey by the city’s research and strategic by the Barclays team. led by Mikhail Foux.

Yields on investment-grade municipal bonds fell to record lows on government bonds as investors poured money into them. In search of higher yields, fund managers are moving to riskier bonds, such as bonds issued by the Triple Five Group. [Bloomberg News] – Akiko Matsuda


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