Add as a preferred source on GoogleSpaceX Five-Year CDS Spread Briefly Hits Record 284.3 Basis Points
The spread widened 14.6 basis points to 284.3 basis points per year. Market participants warned midterm gains could intensify scrutiny of SpaceX and Tesla CEO Elon Musk and complicate an anticipated merger.
SpaceX’s five-year credit default swap spread briefly widened 14.6 basis points to a record 284.3 basis points per year Thursday, raising the market price of protection against the company’s debt default.
The previous peak was set Oct. 30. A CDS spread is the yearly price of protection against missed debt payments.
Market participants warned that the Democratic Party’s strong showing in the midterm elections could intensify scrutiny of SpaceX and Tesla CEO Elon Musk and complicate a merger between the companies that markets had anticipated.
SpaceX and Tesla shares fell sharply Thursday during a U.S. technology-stock selloff. The two companies’ combined market value dropped $130 billion Wednesday.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.