Auto-Parts Companies’ Bankruptcies Rattle Credit Markets—What to Know

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Auto-Parts Companies’ Bankruptcies Rattle Credit Markets—What to Know
A road sign at the foothills of the Great Smoky Mountains in Kodak, Tenn. Darlene McCormick Sanchez/The Epoch Times
Panos Mourdoukoutas
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The U.S. economy has remained resilient in recent months, but auto-parts companies have not. The increasing number of bankruptcies in the auto parts industry is unsettling the high-yield credit markets.

This upheaval is making it increasingly difficult for low-income consumers to purchase cars, and is also compelling banks and financial institutions to write off loans to these failed companies.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”