Fixed Income Forum,NEWS ROOM

Carvana’s Bumpy Ride: Company Facing Increased Risk of Bankruptcy

By Luis Miguel Tejada

 

It’s been a bumpy ride during the last few weeks for used car retailer, Carvana. Using SOLVE’s observable market data we can identify a downward trend in the prices of bonds for the under sieged company. Within the company’s credit curve, we highlight the bonds maturing in 2030 and 2025 with coupons of 10.25% and 5.625% respectively. These two were being quoted around the $70.00 price range at the end of September, since then the average bid for both has dropped more than 40% through December 8th. (Figure 1)

 

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