Three auto-parts makers are borrowing in the junk-bond market this week, helping to push debt issuance for the car sector and related companies up 6% this year even as rising global tariffs potentially weigh on profits.
Parts maker American Axle & Manufacturing Inc. is raising roughly $2.3 billion in bonds and loans to support its purchase of U.K. peer Dowlais. German manufacturer ZF Friedrichshafen AG garnered enough demand from bond buyers to double its junk-debt sale to $1.5 billion, Bloomberg News reported on Tuesday. Automotive-technology company Forvia raised $500 million on Tuesday.
These companies are selling debt as US President Donald Trump ramps up import levies, weighing on overseas car and auto-part manufacturers, which may pass added costs onto customers. That’s pushing yields for debt in the sector slightly higher.
“Some of the deals are coming at comparatively attractive pricing to non-auto sectors, so…
