Automotive's: a key player on the primary market despite the severe disruption of Covid-19
UniCredit's 12th Automotive Credit Conference took place on 16 & 17 June for the second time in a digital format, bringing together a huge range of issuers, capturing the full rating spectrum, and investors. Issuers conveyed their corporate as well as funding strategy providing the investors an excellent opportunity to gain a better information base as to the implications on their investments.
The Automotive Credit Conference by UniCredit, is THE OEM and automotive supplier conference exclusively focusing on debt capital markets. The automotive sector is an integral part of UniCredit's sector coverage and with a supply of almost EUR 50 bn over the past 12th months, the automotive sector yet again represents one of the most active sectors on the primary market.
The two-days conference was full of inspiring speeches and meetings with a broad range of distinguished speakers. Some of the key messages for bond investors were:
- Vaccine rollout and economic recovery are expected to support Automotive sales and production recovery globally, but regionally at different speed
- Stabilization and recovery in credit metrics and ratings continues, which has also led to a reduction of currently still high liquidity positions and new issuance in Investment Grade (IG)
- Electrification targets, strategic ESG focus, sustainable finance and bond issuance activity continue to increase
- Supply of semiconductors affecting production volumes, expected to continue for the near future
- Fundamental recovery largely priced in and risk for disappointment has increased, but some rising star and relative value situations left to look at
We expect the Automotive sector to remain as dynamic and challenging as in the past.
Automotive is key and to the core of UniCredit's heart. We are proud to be one of the key contributors to this sector, acting as a strategic partner to our clients, with a vast experience build over many years.
We are grateful for our clients' trust and remain confident that we are the partner of choice for tailored solutions.