SpaceX credit risk indicator hits a new high

After reports emerged that SpaceX is in talks with banks and investors to raise $40 billion in financing to purchase Nvidia chips, SpaceX's credit risk indicators rose to a record high on Wednesday, and its bonds also fell in the secondary market. Data from ICE Data Services showed that the price of SpaceX's five-year credit default swaps rose by as much as 14.5 basis points to an annualized level of about 195.4 basis points, the highest intraday level since the company's CDS began active trading in June. Market concerns were also reflected in the U.S. investment-grade bond secondary market. Trace data showed that as of 9:40 a.m. New York time, the spread on SpaceX's 6.65% coupon bonds maturing in 2056 widened by 12 basis points to 238 basis points, significantly higher than the 175 basis points when the bonds were issued in June.