Auto-Parts Makers Are Diving Into the US Junk-Bond Market

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 UK 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 ...