Elon Musk's SpaceX sells $25 billion bonds, CDS now trading
SpaceX just raised $25 billion in its first big bond sale, and now Wall Street is trading credit-default swaps tied to the company.
These swaps let investors bet on SpaceX's financial health or protect themselves if things go south.
It's a pretty bold move for Elon Musk's space and AI giant, and marks a new chapter in how people view its risk.
SpaceX bond spreads rise to 1.57%
Since launch, SpaceX bonds have been showing weakness compared to US Treasuries, with the cost to insure against default sitting at 1.255% per year, according to one dealer list (that's $125,500 for every $10 million).
For context, Intel's similar debt costs only 0.64%.
The spread on SpaceX's 10-year bonds has also climbed from 1.4% to 1.57%, hinting that markets are keeping a close eye on the company's credit risk.