Credit Fund Värde Eyes Bargains in Tariff-Hit Auto Suppliers (1)

Tariff pain and a gloomy economic outlook is a dangerous mix for Europe’s car industry. For $17 billion credit fund Värde Partners, it’s a buying opportunity.

Värde Partners’ London-based head of European corporate and traded credit Carlos Sanz Estevesees bigger auto-parts makers, whose bonds have taken a bruising in recent weeks, as especially promising.

With their intertwined and complex supply chains, auto suppliers have been among the hardest-hit in the global selloff. Yet many larger auto suppliers have already extended their debt maturities, giving them time to turn their businesses around, Sanz Esteve said in an interview.

Turnaround bets ...