SpaceX bond worth 10% less than issue price – heading for junk bond status
ft.com
July 15, 2026
3 min read
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67/100
Summary
SpaceX's stock has declined by 38% from its peak post-IPO valuation. The company's market cap previously surpassed that of Amazon and Microsoft.
Key Takeaways
- SpaceX's 2056 bonds have seen their yield spread widen from an initial 175 basis points to 231 basis points over similar maturity US Treasuries.
- The value of SpaceX's 2056 bonds has decreased significantly, with a $100 million allocation dropping to $90.7 million in less than a month.
- SpaceX bonds are currently the worst-performing US dollar triple-B benchmark bond, according to the ICE BofA indices.
- The market is pricing SpaceX and Oracle bonds similarly, indicating a perception of junk risk associated with both companies.
Community Sentiment
Concerns
- Investors are blindly sinking their life savings into Elon Musk's promises, which have repeatedly fallen flat — from Optimus robots to autonomous driving, skepticism is rampant.
- The bond's drop in value right after issue screams trouble; it's a stark indicator of how investors view SpaceX's future, raising serious operational risk concerns.
- Changing Nasdaq rules to fast-track SpaceX's inclusion feels like a manipulation of standards, leading to premature investments before the stock can find its true value.
- With SpaceX's bond rated junk, it highlights a troubling reality: the company is in a capital-intensive business facing high costs of borrowing, making future fundraising precarious.
