This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

6 U.S. Default Winners & Losers

4. General Growth Properties

The commercial leasing industry might be negatively affected in the event of a default because rental space might find fewer tenants in the event of a slowdown, making it harder for them to offset high fixed costs.

The list identifies General Growth Properties (GGP - Get Report) as a company that could be affected. The company, which counts Pershing Square's William Ackman as a major investor, operates shopping centers in the U.S.

General Growth emerged from bankruptcy last November. Since then it has been taking advantage of lower interest rates to refinance its mortgages. That effect won't last if there is a default.

Rental incomes will also come under pressure as retailers encounter poor consumer spending.

Already, cautious shopping habits of consumers has hurt business. Regional mall vacancies reached 9.3%, its highest level in 11 years in the second quarter as department stores closed and retailers scaled back expansion plans according to preliminary data from Reis.

Higher vacancy rates squeeze rental income, while fixed costs for mall operators remain high.

Simon Property Group (SPG - Get Report) and Vornado Realty Trust (VNO - Get Report) will also be negatively affected, according to IBIS.

"I'm known for checking our accounts receivable every month when I get the report. And they (the U.S. government) are always 30 days delinquent," David Simon, CEO, Simon Property Group told Reuters, commenting on the debt crisis. "But beyond that, we don't see any real risk. Spreads will invariably widen for all of corporate America and for all asset classes. So we'll be a participant in that, but beyond that, we can't see anything that's going to be anything material."

Read on now for the winners.

4 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AGCO $48.07 0.00%
BLK $368.10 0.00%
DE $88.61 0.00%
F $16.16 0.00%
EFX $93.33 0.00%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs