Mortgage bonds continue to punish investors

New York

A PROPERTY in New York City that investors were told would be the home of an iconic Apple store has instead wound up stuck in a mortgage bond facing hundreds of millions of dollars in unpaid debt.

Apple never built a store on the 34th Street site and, like much of the bond's remaining US$1.7 billion collateral, not one penny of the principal on its US$100 million mortgage has been repaid.