Carvana Bonds Fall as Used-Car Price Slide Puts Margins at Risk

Used-car retailer Carvana Co. bonds slumped on Monday amid reports that declining used-car prices in the second half of the year could weigh on auto-dealer margins.

• Carvana’s 10.25% bonds maturing in 2030 fell 1.625 cents on the dollar to 81.25 cents, the lowest since they were issued in April, according to Trace bond trading data. The bonds were among the biggest decliners in the US high-yield market
  • NOTE: In April, Apollo agreed to purchase roughly half of the debt offering
• Carvana’s 4.875% bonds maturing in 2029 fell 2 cents to 56.75 cents as of 2:41pm ET
• Carvana’s shares have plunged ...