SpaceX $25B Debut Bond Plunges, Loses $400M in 48 Hours After 4x Oversubscription

According to Zerohedge, SpaceX's inaugural investment-grade corporate bond offering collapsed in secondary trading this week, with the $25 billion issue accumulating mark-to-market losses near $400 million just two days after launch. The bond, which attracted roughly $90 billion in orders during the initial offering phase, saw yield spreads widen approximately 32 basis points on longer-dated maturities, according to TRACE data.

Market participants attributed the sharp reversal to an influx of short-term arbitrage flows during the offering phase. As expected price appreciation failed to materialize, selling pressure intensified rapidly. Longer-dated tranches, particularly 20-year and 30-year bonds, experienced the most severe repricing, while the 5-year maturity performed relatively better.