Investors in what was the safest part of a loan backed by UK shopping malls are facing losses, possibly the first such impairment since the global financial crisis, according to Bank of America.

“There have been some signs of distress in the CMBS market, particularly around shopping malls, some of which haven’t really recovered from the pandemic era,” said Harjeet Lall, a securitization partner at law firm Pinsent Masons LLP. “Many malls are struggling because of reduced consumer spending and a drop in occupancy levels.”