VW Woes Infect Broader Auto Credit as BP Serves as Guide: Analysis
This article is for subscribers only.
The tumult surrounding Volkswagen AG and its deceptive emissions testing is pushing its bond valuations wider and is also infecting the broader auto sector. But the market and credit spread reaction seen so far may have much further to run if the market fallout from the BP Deepwater Horizon disaster serves as a guide, Bloomberg strategist Simon Ballard writes.
As the crisis at the German automaker widens, and the outcome of the situation remains uncertain, investors are erring on the side of caution with little sign yet of any buying interest at cheaper levels.