What we’re reading (11/24)
“Apple’s Holiday iPhone Shortage Is A Symptom Of A Much Larger Problem” (Macworld). “Apple…has one large weakness that can bring the company to its knees: its overreliance on China. Yes, the region provides a big chunk of the company’s sales, but even more to the point, it’s the epicenter of Apple’s global manufacturing and assembly. And when that’s threatened–by political issues, supply chain problems, or COVID-related conundrums–it can put a serious dent in the company’s bottom line.”
“Goldman Sachs To Pay $4 Million To Settle Investigation Over ESG Funds” (Wall Street Journal). “The Securities and Exchange Commission said Goldman marketed the ESG funds and a similar investment strategy without always following a consistent framework spelled out in its compliance plans. That meant Goldman violated an SEC compliance rule that requires investment advisers to implement plans designed to prevent potential regulatory violations. Goldman neither admitted nor denied the SEC’s allegations.”
“The Premium in Private Credit Has Disappeared. That’s Not Stopping Allocators.” (Institutional Investor). “Investors aren’t getting a bump for putting their money into private credit rather than public securities, but many are shrugging it off. The yield parity between the two comes after steep declines in the public markets. It’s not just that allocators’ current commitments to private credit funds are locked up for years. Many investors are ponying up new money for private credit, even as the decline in liquid markets has created better opportunities than they’ve seen in years.”
“Binance Deploys $1 Billion To Keep Crypto Industry Afloat After FTX Collapse” (CNBC). “Cryptocurrency exchange Binance on Thursday announced new details about its industry recovery fund, which aims to prop up struggling players in the wake of FTX’s calamitous bankruptcy. In a blogpost, Binance said it will devote $1 billion in initial commitments to the recovery fund. It may increase that amount to $2 billion at a point in time in the future ‘if the need arises,’ the company added.”
“‘No Buyers In Sight’: A Senior Economist Says Home Prices Will Fall By 25% As Supply And Demand Dynamics In The Housing Market Have Created A Perfect Environment For Declines” (Insider). “Such a decline on a national scale would be similar to the home-price slump seen during the 2008 crisis, when the index fell 27% from its peak in July 2006 through its bottom in February 2012. Case-Shiller data, being an average of the prior three months, lags more than other home price data. But individual cities like Phoenix and San Francisco had it worse during the crisis, with price declines of up to 30%. As of September 2022, the average home price in Phoenix had dropped 10% from June, according to Realtor.com.”
