Buzzberg Cup Bracket locked

SpaceX Kicks Off Debut US Dollar High-Grade Bond Sale

Watch on YouTube ↗  |  June 23, 2026 at 12:29  |  11:18  |  Bloomberg Markets
Speakers
Robert Schiffman — Credit Analyst, Bloomberg Intelligence

Summary

Robert Schiffman, Bloomberg Intelligence senior technology credit analyst, discusses SpaceX's inaugural investment-grade bond sale. He explains that rating agencies gave SpaceX high ratings despite negative cash flow, betting on future growth and Elon Musk's vision. Massive demand is expected. Schiffman also highlights a broader opportunity in investment-grade bonds of AI hyperscalers like Alphabet and Amazon, calling them cheap with strong growth potential.

  • SpaceX is issuing investment-grade bonds rated BBB/BBB+ to fund heavy capex and refinance debt.
  • Rating agencies are confident SpaceX will grow into its ratings despite weak current financials.
  • Elon Musk is seen as a key visionary, giving bondholders confidence and access to capital.
  • Expected order books for the SpaceX deal could reach $125 billion on a $20-25 billion issue.
  • Large tech hyperscalers (Alphabet, Amazon, Meta, Microsoft) are raising huge debt for AI spending but remain financially flexible.
  • Schiffman recommends buying these high-grade corporate bonds, which he sees as historically cheap with upside.
Ideas
Robert Schiffman Credit Analyst, Bloomberg Intelligence 0:51
SpaceX bonds are a strong buy.
Rating agencies have assigned SpaceX investment-grade ratings (BBB/BBB+) despite its current weak balance sheet and negative free cash flow, signaling the company will grow into its ratings. Elon Musk's visionary leadership and diversified business provide a strong backstop. The upcoming bond deal is expected to price attractively relative to comps, with massive demand (order books potentially $125bn on a $25bn deal). This creates a compelling buying opportunity in SpaceX bonds.
SpaceX Bonds HIGH
Robert Schiffman Credit Analyst, Bloomberg Intelligence 9:02
Hyperscaler bonds offer attractive upside.
The largest AI hyperscalers (Alphabet, Amazon, Meta, Microsoft) are spending massive amounts on AI capex, yet their investment-grade balance sheets and strong growth profiles allow them to absorb the leverage. Their bonds currently offer historically cheap entry points with better returns, presenting much more upside than the perceived risk. Bondholders can gain exposure to these 'Mount Rushmore' names at attractive valuations.
Hyperscaler investment-grade bonds HIGH
Up Next
8:41
Billionaire investor Philippe Laffont: There will be a $10 trillion company in the future
CNBC · Jun 23
1:16:29
Investing a $120 Billion Balance Sheet with No Outside Investors
ILTB Podcast · Jun 23
36:22
Semiconductor Stock Correction Market, More Important Than Stop-Loss Is 'Purchase Price'. | Kim Jang-yeol, Unistory Asset Management Research Center Head [Focus Today's Stock]
3PRO TV (삼프로TV) · Jun 23
43:27
Stocks Hit by Global Tech Selloff | Bloomberg Brief 6/23/2026
Bloomberg Markets · Jun 23
7:01
The tech selloff is 'healthy' and 'good for the markets', says Morgan Stanley's Andrew Slimmon
CNBC · Jun 23

This Bloomberg Markets video, published June 23, 2026, features Robert Schiffman discussing SpaceX Bonds, Hyperscaler investment-grade bonds. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Robert Schiffman  · Tickers: SpaceX Bonds, Hyperscaler investment-grade bonds