Apollo’s John Zito Leads Its $500 Billion Credit Threat to Banks

When used-car seller Carvana Co. was in deep financial trouble last summer, Apollo Global Management Inc. tapped a former hedge fund trader to straighten out one of its credit group’s most prominent missteps.

John Zito wasn’t there to use his experience betting against beleaguered companies. Instead, his role was to rally creditors to slash more than $1 billion of Carvana’s more than $5 billion of bonds and save the online retailer from crumbling. While Carvana’s future is far from certain, its stock is up more than 60% this year and it posted its first annual profit in years.

Zito’s ...