Quoth the Raven
· QTR’s Fringe Finance
· June 27, 2026 at 14:02
· ⏱ 1 min read
| Read on Substack ↗
Summary
SpaceX's $25 billion bond offering has deteriorated sharply in secondary markets, with traders losing roughly $305 million relative to Treasuries just days after issuance. The rapid widening—0.28 percentage points beyond the original issue spread—surprised even veteran credit traders, highlighting unique pricing challenges and weak technicals for this private-company debt. The sell-off signals growing investor caution toward high-yield issuance from opaque, high-profile issuers.
•SpaceX issued $25 billion in bonds, but secondary-market losses already total approximately $305 million relative to Treasuries.
•One dealer quoted the longest-dated bonds 0.28 percentage point wider than the original issue spread.
•Bloomberg reported that several traders 'can't recall another recent deal that widened this sharply.'
•Portfolio manager Tony Trzcinka cited weak technicals, enormous supply, and uncertainty over pricing SpaceX's unique risk profile as reasons for the sell-off.