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Smith's Research & Gradings
Volume: 
XXIX
Issue: 
3
Author: 
February 16, 2021

Smith's Research & Gradings

American Dreamers

American Dreamers

American Dream bondholders went on real roller coaster ride that rivals the mall's Nickelodeon Universe Theme park.
It started when the COVID-19 crisis shut down the American Dream mall from last March through August and prices plunged into the 80s the bonds.

Two weeks ago, the MSRB EMMA site featured a "failure to file notice".  Several analysts were quick to say, "It doesn't surprise me" and "I don't think we will hear good news."  Several waxed philosophical with lengthy descriptions of how COVID-19 has changed retail shopping
Yet the next day, American Dream filed an update (see below) that surprised almost everyone.  The American Dream mall showed positive traction starting in September and kept climbing through December.  The Grinch did not steal Christmas from American Dream.

Then, on February 9, the MSRB's EMMA website posted a trade with a customer selling the American Dream bonds at 106.657, or a 5.8% yield, and a customer buying a couple minutes later at 106.946, or a 5.75% yield.

"It was a $10 mln. block of bonds that traded around 3:30 (EST) in the afternoon," a source said. "The trade changed the evaluations and produce a 23% gain for American Dreamers."

Haters went wild after the news reported. Many suggested the trade was done between funds with a single family because of the timing. Others suggested it was a signal the municipal high yield bond market had hit a top.

Take notice

Stay on top of the latest global news that can impact your investment strategy.

Will Infrastructure Promises Meet Expectations

Targeted Infrastructure programs will be one of the featured revitalization tools used for stimulating growth in the US economy post the COVID-19 pandemic. Many observers have anticipated massive large-scale infrastructure programs, but that may not be viable at this time, given the financial capabilities of many state and local governments.

Beirut’s Agony: Ports, Food, and China

On August 4th the port of Beirut was the scene of a horrific explosion, which killed more than 150 people, injured 6,000 and left some 300,000 homeless. The damages are estimated to be in excess of $15 billion. The city’s hospitals, already struggling due to the COVID-19 pandemic, were damaged by the blast and swamped with injured. On top of already raging economic and political crises, the explosion now raises the question of food security. Prior to the explosion, 80 percent of Lebanon’s imports passed through Beirut’s port. Without a functioning port in Beirut, the country now relies on a handful of secondary ports, chief among them being Tripoli in the north, to import food and to export its products.

Outlook Positive

SpaceX blasts through a major milestone with first manned mission

This joint public/private venture between NASA and SpaceX begins a new chapter in space exploration. How will this effect future commercial demands in space?

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