Wall St speculators smell money as malls get mauled

New York

WALL STREET speculators are zeroing in on the next US credit crisis: the mall.

It's no secret many mall complexes have been struggling for years as Americans do more of their shopping online. But now, they're catching the eye of hedge-fund types who think some may soon buckle under their debts, much the way many homeowners did nearly a decade ago.

Like the run-up to the housing debacle, a small but growing group of firms are positioning to profit from a collapse that could spur a wave of defaults. Their target: securities backed not by subprime mortgages, but by loans taken out by beleaguered mall and shopping centre operators.

With bad news piling up for anchor chains such as Macy's and JC Penney, bearish bets against commercial mortgage-backed securities (CMBS) are growing. In recent weeks, firms such as Alder Hill Management - an outfit started by proteges of hedge-fund billionaire David Tepper - have ramped up wagers against the bonds, which have h…