SpaceX Bond Spreads Widen for Fourth Day, Yields Hit 1.7 ppt Over Treasurys
SPCX is trading near its 52-week low of $145.2 (5.2% above the low) on light trading volume (0.2× avg).
Summary
SpaceX's $25 billion bond due 2036 has seen spreads widen for four straight sessions, now yielding 1.7 percentage points over Treasurys versus 1.4 at issuance. The underperformance, flagged by CreditSights, reflects fatigue with heavy AI-related debt supply, the stock's volatile ride since the June IPO, and high allocations to fast-money flippers. Notably, the bonds trade at a significant discount to similarly rated telecom peers like T-Mobile and Verizon, which hover around 0.9 percentage point spreads. This divergence suggests the market is pricing in unique risk or liquidity concerns specific to SpaceX's credit, despite its investment-grade rating. With the stock already under pressure, the bond weakness adds another layer of near-term headwinds for the company's capital structure.
At the time of this announcement, SPCX was trading at $152.80 on NASDAQ in the Technology sector, with a market capitalization of approximately $2T. The 52-week trading range was $145.20 to $225.64. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.