Automakers’ Bonds Are a Hot Trade Now That Tariffs Are in Limbo

European carmakers are selling the most new bonds in years, seeking to take advantage of a calmer window in US President Donald Trump’s trade war as well as strong investor demand for the high yields on offer.

Automakers and parts manufacturers including Volkswagen AG and Mercedes-Benz Group AG sold more than €13 billion ($14.8 billion) of bonds in May, making it the busiest month for euro issuance in the sector since early 2017. Many more have launched deals in the first week of June, including a trio of junk-rated companies that supply components from car seats to steering wheels.