Institutional tug-of-war over Big Shopping Centers' debt: Migdal sells tens of millions in bonds, Harel and Phoenix buy

While Migdal's life insurance arm sold bonds of the real estate giant worth over ₪22 million, Harel and Phoenix's mutual funds increased their holdings in various series, painting a mixed picture among the country's major institutional investors.

A new holdings report by Big Shopping Centers reveals opposing moves by major institutional players in the third quarter of 2026. Migdal Insurance sold over ₪22 million of the company's bonds, primarily in Series XXII and XXIV. Conversely, Harel and Phoenix increased exposure in other series with significant purchases across mutual funds and life insurance accounts, pointing to a lack of consensus among "smart money" regarding risk assessment in the company.

A bond holdings report published by income-producing real estate company Big Shopping Centers reveals deep disagreements among Israel's largest institutional entities. The data, current as of the end of the third quarter of 2026, presents a complex picture of aggressive selling on one hand and significant buying on the other, indicating a lack of consensus in the debt market regarding the risk and potential of one of the stock exchange's prominent real estate companies.

Migdal on the selling side, Harel and Phoenix on the buying side

The most prominent move of the quarter came from Migdal Group's life insurance arm, which executed extensive sales of Big's debt. According to the report, Migdal's life insurance accounts sold Series XXIV bonds (1227032) totaling approximately ₪15.74 million, as well as Series XXII bonds (1186188) totaling approximately ₪7.15 million. In total, this represents a reduction in exposure of over ₪22.8 million across these two series alone, pointing to a strategic decision to lower risk in its investment portfolio regarding Big.

In stark contrast to Migdal's trend, investment houses Harel and Phoenix utilized the period to increase exposure to the company's debt. Harel's mutual funds executed a massive purchase of approximately ₪16.94 million in the same Series XXIV that Migdal exited. In addition, Harel's pension and provident fund arm acquired Series XVIII bonds (1174226) for an amount of approximately ₪8.52 million.

A similar trend of increased holdings was recorded at the Phoenix Group. Phoenix's life insurance accounts purchased Series XI bonds (1151117) totaling approximately ₪5.1 million. Simultaneously, Phoenix's mutual funds increased their holding in Series XII (1156231) by about ₪6.05 million.

A complex picture within investment houses as well

The analysis deepens further when examining activity within each individual investment house. The moves are not one-directional, exposing varying strategies between the different arms of each entity. For example, while Harel's mutual funds bought bonds in large volumes, the group's pension and provident arm sold Series XXII bonds totaling ₪4 million.

Similarly, Phoenix's mutual funds, which evaluated purchases in certain series, simultaneously sold Series XXII bonds totaling approximately ₪5.5 million. These moves underscore that different investment managers, even under the same roof, hold differing views on the attractiveness of Big's various debt series, potentially due to differences in duration (average life), yield, or perceived risk level.

The active and contradictory trading in Big's debt market in the third quarter of 2026 provides a rare glimpse into the dilemmas faced by the market's most sophisticated investors. While some see reason to pare down exposure, others spot an opportunity and increase their investment. The overall picture points to a divided market that will continue to closely monitor the company's performance and the macroeconomic environment.