Carvana Rebounds as Report on Walter’s Pledged Stake Allays Fear

The scrutiny raised questions about what could happen to Walter's Carvana position if fallout from the investigation pressures him to raise cash.

Shares of online used-car dealer Carvana Co. recovered some losses from a two-day selloff, after a report showed billionaire Mark Walter’s stake in the company was pledged, meaning he wouldn’t be able to immediately sell it as he contends with a federal probe of his investment…