Saturday, December 3, 2016

The Collateral Damage of Sears

December 2, 2016
Moody's Downgrades Seven and Affirms Nine Classes of MSC 2007-HQ11

The largest specially serviced loan is the Galleria at Pittsburgh Mills Loan ($133 million -- 18% of the pool), which is secured by an 880,000 square foot collateral portion of a super-regional mall located in Tarentum, Pennsylvania. The mall's financial performance has declined sharply in recent years, largely mirroring a decline in overall occupancy. The departure of anchor tenant Sears in late 2015 triggered co-tenancy clauses at the property causing several inline tenant leases to become percentage leases, further contributing to the decline in performance. The mall is currently 57% occupied, down from 88% as recently as December 2014. The servicer is the pursuing foreclosure and expects the property to become REO.

Domino Theory

Finally, you have broader considerations that might follow what you would call the "falling domino" principle. You have a row of dominoes set up, you knock over the first one, and what will happen to the last one is the certainty that it will go over very quickly. So you could have a beginning of a disintegration that would have the most profound influences. - Dwight D. Eisenhower

Crazy theory. Totally debunked. Everyone knows a chain is always as strong as its strongest link.


mab said...

I hate to be the "Carrier" of bad news, but Donald Schumpetering the horn of creative destruction is good news! Or not?

Stagflationary Mark said...


Carrier! Wow! So many pun opportunites unleashed! Yes!!

Dare I Sprint to the easiest pun? No, sir. This one requires patience.

The soon-to-be typhoid in charge certainly knows how to marry? Done it many times? No, too easy. Seems a bit forced. Must try again!

Carrier? You're talking about free market enterprise! Is that in our future? Or will it be free market wasps? Torpedoes on every corner? Manned by PhDs!!

USS Wasp (CV-7)

A spread of six Type 95 torpedoes were fired at Wasp at about 14:44 from the tubes of the B1 Type submarine I-19. Wasp put over her rudder hard to starboard to avoid the salvo, but it was too late. Three torpedoes struck in quick succession about 14:45; one actually broached, left the water, and struck the ship slightly above the waterline. All hit in the vicinity of the ship's gasoline tanks and magazines. Two of the spread of torpedoes passed ahead of Wasp and were observed passing astern of Helena before O'Brien was hit by one at 14:51 while maneuvering to avoid the other. The sixth torpedo passed either astern or under Wasp, narrowly missed Lansdowne in Wasp's screen about 14:48, was seen by Mustin in North Carolina's screen about 14:50, and struck North Carolina about 14:52.

(As a side note, my dad served on the North Carolina in WW2. No joke.)

mab said...

I'm not sure you caught my drift would.

In any event, I'll take your enterprise and raise you NCC-1701!

Also, in this part of the country we don't have torpedoes, but we do have subs (and heroes like your father!)

As for crazy theories, I heard one about the speed of light in a vacuum cleaner!

Stagflationary Mark said...


Learn something new everyday!

I always thought it was the speed of life in a vacuum cleaner. At least that's what I tell myself when I'ma salting a spyder's web connection. At first you don't suck seeds, trike, trike again!

Vulcan curse:

Live and long for prosperity.

mab said...

Check out this scary web connection!

What a virtual safari!

Stagflationary Mark said...


I was having a pretty good day playing games on my iPhone. Was. Sigh.

We're Doom'd. :(