Jaguar Land Rover Debt Investors Run for Cover on Tariff Threats
- Company may face challenges in short-term, Standard Life says
- Automaker faces wall of debt to refinance in next three years
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Escalating trade tensions and Brexit are taking a toll on Jaguar Land Rover in the credit market, where the cost of insuring the company’s bonds has more than doubled this year.
Swaps that guard against a default for five years have climbed 172 basis points this year to 311 basis points, according to data provider CMA. That’s more than twice the biggest increase among CDS of 18 other auto-industry players globally tracked by Bloomberg. Jaguar Land Rover’s 2027 dollar bond has dropped about 10 cents on the dollar to 88.5 cents over that period, according to data compiled by Bloomberg.