Auto manufacturers may issue 18% more debt in 2016 vs. 2015,
potentially affecting spreads. Toyota leads the high-grade auto
sector with almost $11 billion of U.S.-dollar denominated issues
coming due through 2016. Ford has $6.8 billion of debt maturing
and, similar to Toyota, about $1.5 billion due in May.
Volkswagen has $1.6 billion of U.S.-dollar debt maturing in
November and another $3 billion in 2016. With CDS on Volkswagen
at similar levels to Ba2/BB rated issuer Goodyear, refinancing
may prove costly.