SpaceX bond sale weakens as traders 'scratching heads' over valuation

26. Jun 2026

(AWP Alliance News) - Space Exploration Technologies Corp's inaugural bond sale is weakening at a rate rarely seen, Bloomberg reported on Friday.

The Starbase, Texas-based space technology and artificial intelligence company launched its first-ever bond issuance on Tuesday.

The offer included USD7.0 billion of 5.35% notes due 2031, USD6.0 billion of 5.65% notes due 2033, USD6.0 billion of 5.875% notes due 2036, USD2.5 billion of 6.6% notes due 2046, and USD3.5 billion of 6.65% notes due 2056.

However, secondary market transactions show losses accumulating since the USD25 billion debt issuance began trading. Losses totalled around USD305 million as of late Thursday relative to Treasuries, Bloomberg reported.

A "large dealer" was quoting the 2056 bonds at levels as much as 0.28 percentage points wider than the issue price of 1.75 percentage points above Treasuries, according to Bloomberg sources with knowledge of the matter.

"We expected SpaceX to widen from issuance level, but not this much," said Tony Trzcinka, a portfolio manager at Impax Asset Management Group PLC. "That magnitude is likely a perfect storm of the stock shedding USD600 billion+ since launch, weak technicals from the upsized supply, and investors still scratching their heads over how to price its unique risk profile."

In contrast, spreads on Nvidia's 5.55% bonds maturing in 2046, part of its own USD25 billion offering this month, have widened by 8 basis points since issuance, with similar moves for its 5.625% 2056 notes.

Meanwhile, spreads have tightened on longer-dated Alphabet Inc bonds issued in February. Oracle Corp, like SpaceX, has also seen spreads widen shortly after issuance.

Earlier on Thursday, Bloomberg reported an investor letter from Chinese hedge fund Wealspring Asset, which described AI equities as a "super bubble" and warned that the "collapse point may not be far away."

It also cited a letter from Shanghai Banxia Investment Management Center, which told investors the "trigger for the AI bubble to burst has already appeared."

Of the total SpaceX offering, demand was strongest for its five-year notes. 20-year and 30-year bonds saw the biggest drop-off in demand, Bloomberg noted.

SpaceX shares fell 0.7% after hours in New York on Friday. They had earlier closed up 0.2% at USD153.23 each.

By Aidan Lane, Alliance News reporter

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