American carmakers face credit pressure over Trump tariffs


Automakers’ bonds are seeing their prices rise, but they’re lagging the broader universe of high-grade bonds. — Bloomberg

NEW YORK: Bond investors are getting a little more concerned about the outlook for automakers that could see their bottom lines hit by US tariffs.

The extra yield that bondholders get for owning investment-grade car bonds instead of Treasuries has widened about 0.2 percentage point since the end of January.

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