BlackRock is winding down its Impact Opportunities Fund after losses tied to the bankruptcy of car lender Tricolor, which targeted minority borrowers. Here's what happened and why it matters: --- 🚨 What triggered the fund’s collapse? - Tricolor Auto Group filed for Chapter 7 bankruptcy in September 2025, citing liabilities between $1–$10 billion. - BlackRock had invested in Tricolor through its Impact Opportunities Fund, which focuses on minority-owned businesses. - Tricolor specialized in subprime auto loans for Latino communities, issuing $2 billion in AAA-rated asset-backed securities (ABS) just months before collapsing. These securities are now trading at 12 cents on the dollar, causing steep losses for investors like BlackRock. --- 💥 Ripple effects across Wall Street - JPMorgan and Fifth Third Bank also reported losses of up to $200 million tied to Tricolor’s collapse. - The failure, alongside the bankruptcy of First Brands, has raised alarms about credit stress in auto lending and structured finance. - JPMorgan CEO Jamie Dimon warned of “more cockroaches,” suggesting deeper issues in the credit market. --- 🔍 Why this matters for investors and regulators - BlackRock’s decision to wind down the fund reflects growing caution around minority-focused and subprime lending vehicles, especially those backed by ABS. - The collapse has prompted scrutiny of AAA ratings and the reliability of structured credit markets. - Analysts are watching for contagion risks in other sectors, as rising interest rates and inflated car prices strain borrowers across income levels.

BlackRock is closing the fund to new cash and will sell off its assets. A stark reminder to check what's really under the hood of "impact" investments.

UTC UFF

the system hasn't worked for everyone?

Talk about time wasting - plain stupidity in site yet gullible individuals devoted resources to such idiotic ideas.