Richards Says SpaceX Is Biggest Rising Star of All Time
Speakers
Bruce Richards
— CEO, Chairman, and Founder, Marathon Asset Management
Summary
Marathon Asset Management CEO Bruce Richards argues SpaceX is the biggest rising star in credit history after refinancing high-yield debt into an investment-grade facility. He highlights SpaceX's minimal leverage, massive cash reserves, strong cash flows from data centers, and its ability to easily support much more debt given a nearly $2 trillion equity valuation.
- SpaceX refinanced $17.5B of high-yield debt (10–12% coupons) with a $20B facility at ~4.6%.
- Richards calls SpaceX the biggest rising star ever in credit markets.
- SpaceX now has no net debt, with >$80B cash and only $20B in total debt.
- Debt represents just 1% of enterprise value; a $2T equity cap supports much higher debt loads.
- Data center cash flows are growing and strengthen the credit profile.
- The IPO is pricing at $1.77B, drawing comparisons to Facebook's 2012 debut but is seen as a far larger equity event.
- Richards sees SpaceX as very well positioned across the capital structure.
Ideas
SpaceX bonds are investment-grade strong.
SpaceX is the biggest rising star in credit history. It refinanced $17.5 billion of high-yield debt (10–12% coupons) with a $20 billion facility at ~4.6%, achieving investment-grade pricing. With a ~$2 trillion equity market cap and over $80 billion cash, the company has no net debt, debt is only 1% of enterprise value, and it could easily carry $30–50 billion of debt. Cash flows from data centers are strong and growing, making the credit profile exceptionally solid.
Up Next
This Bloomberg Markets video, published June 11, 2026, features Bruce Richards discussing SpaceX Bonds. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Bruce Richards · Tickers: SpaceX Bonds