Carvana: Subprime Auto in Prime Clothing
Carvana: The Return of Subprime Auto in Prime Clothing Why the 10,000% Rally from $4 to $415 is Built on Deteriorating Credit and a Fragile Securitization Model I. EXECUTIVE SUMMARY Carvana’s 10,000% rally from $4 to $415 is being celebrated as one of the greatest comeback stories in market history. We believe it is built on a foundation of deteriorating credit quality that the market has not yet recognized, hidden behind a “prime” ABS designation that is increasingly divorced from the underlying collateral. ...