For tech issuers, it might be worth considering raising as soon as possible – even if this is expensive. Carvana, the US online used car marketplace, now looks like it may be in a very high profile fight with bondholders – which may turn strongly turn sentiment against tech issuers and make it difficult to issue for a while.

Carvana issued $3bn 10.25% bonds in April 2022. These are now trading at below 50 cents.

A group of credits representing more than 80% of the bonds entered into a cooperation agreement in December. These investors include Apollo, Blackrock, Pimco, Ares, Knighthead, Oaktree and Davidson Kempner.

Carvana is reported to be working with Moelis and Co and Kirkland and Ellis.

The company might have the ability to restructure its debt or business to solid ground – but there is a risk that this will not happen, the story becomes high profile, and results in contagion for other tech issuers.