SpaceX's credit risk has reached a record level, and the company's bonds have weakened on the secondary market following reports of negotiations with banks and investors to raise $40 billion for purchasing chips from Nvidia. Five-year credit default swaps rose by 16.7 basis points to approximately 197.6 basis points per year, according to ICE Data Services. This is the highest level since active trading of swaps began in June.
According to the Financial Times, the discussion may involve $10 billion in bank loans and $30 billion in investment debt. The discussions are at an early stage and may end without a deal. Concerns have spread to the bonds of Meta and Skydance. "This is an unprecedented debt offering with no real end in sight," said Sal Naro of Coherence Credit Strategies.
The spread on SpaceX bonds with a 5.875% coupon maturing in 2036 widened to 193 basis points compared to 140 at issuance in June. Premiums on Meta bonds rose to 189, and Skydance spreads to 342 from 330 at sale. Apollo Global Management, part of Nvidia's partnership to raise $500 billion for AI infrastructure, previously financed xAI with $7 billion through a special-purpose vehicle for leasing chips in Memphis. According to a Barclays note, such financing may reduce the parent company's debt in the long term but will create pressure in the short term. Hyperscalers and AI infrastructure projects have attracted about $370 billion this year compared to $125 billion for all of 2025. Nvidia owned about 1.5% of SpaceX as of June 30, valued at around $21 billion. Broadcom has begun raising $60 billion for chips for Anthropic.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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