This year s healthy rebound in US auto ABS issuance may lose momentum if a semiconductor shortage slashes into vehicle production and slows loan origination.
Auto producers are scrambling to find chips to operate sensors, dashboard displays and GPS for their vehicles after they canceled shipments during the height of the pandemic last year when it became clear that demand for new cars would decline due to a global recession. Now as car sales are surging with a healthier economy, the semiconductor industry is backlogged with orders for personal electronic devices, which have seen booming sales amid stay-at-home orders.
General Motors, Ford Motors and Volkswagen have already scaled back vehicle production due to this supply chain disruption. If more car makers pare back production, some market participants reckon a slowdown in auto securitization will follow, holding back the recovery from last year s pandemic-related decline in supply.
Wall Street’s Oldest Black-Owned Investment Bank Makes History
Eric Standifer Blaylock Van CEO
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Blaylock Van L.L.C, Wall Street’s oldest continually operating Black-owned investment banking firm, has gained more success in the last year as more American companies and municipalities recognize the value of doing business with Diverse Business Enterprises (DBE), especially when it comes to Black-owned businesses within the financial services industry.
On Thursday, Blaylock announced that it was one of four exclusively Black-owned financial institutions to syndicate Citi’s $2.5 billion bond issuance,
Black News reports. The company was only one of five minority-owned underwriting managers who completed a $14 billion new issue debt transaction with Apple.
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In August, when the $3.1 million in Berkshire Hathaway bonds that the City of Aspen holds mature, the city will not be repurchasing.
It’s not for lack of performance. The funds have done tolerably well. Rather, the Berkshire Hathaway bonds are tainted by a bad environmental record.
The city wants its $131 million in investments to reflect Aspen’s values. That most prominently means walking away from carbon.
“The City of Aspen is taking the first steps to putting our money where our mouth is,” says Mayor Torre (he goes by one name). “I anticipate a two-year process to fully divest from the investments that don’t reflect our community values. Our intention is to be fiscally responsible as we get policy in place to guide our banking and investments to meet our environmental, social, and governance expectations.”