DISTRESSED DAILY: McLaren Automotive’s Default Risk Tops Peers

McLaren Automotive looks more at risk of default than many of its peers.

The luxury car maker has more than double the average default risk for high-yield consumer discretionary companies rated between single B and CCC+, according to a Bloomberg Intelligence note Monday. Its five-year risk stands at about 1.9 times B- rated peers.

McLaren’s $600 million of 7.5% notes due 2026 change hands at 79.75 cents on the dollar, according to Trace data, to yield 14.7%. But comparable issues from companies like Carnival Corp. yield even more. The cruise operator’s 7.625% notes due 2026 yield nearly 18%.

The company ...