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Smith's Research & Gradings
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.

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