SpaceX bond sale signals markets are in ‘bubble territory’, warns Allianz CIO - FT中文网
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SpaceX bond sale signals markets are in ‘bubble territory’, warns Allianz CIO

Debt investors will scrutinise Musk’s rocket company more closely than equity markets, says Ludovic Subran
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{"text":[[{"start":9.55,"text":"SpaceX’s decision to launch a $25bn bond sale shortly after raising $86bn from its record-breaking IPO is a clear sign that markets are entering “bubble territory”, the investment chief at insurance group Allianz has warned."}],[{"start":24.6,"text":"Big investors have grown increasingly nervous that companies rushing to raise money in a flurry of big equity and bond deals — seizing on record-high stock prices and credit spreads close to their tightest in decades — could signal a top in frothy markets."}],[{"start":40,"text":"SpaceX raising debt so soon after a blockbuster equity issuance was a “good example” of markets shifting from “a healthy boom, a stretched boom . . . into bubble territory”, said Ludovic Subran, chief investment officer at Germany’s Allianz, which manages €800bn of assets."}],[{"start":58.1,"text":"Subran told delegates at this week’s FT Global Insurance Summit that bond investors would be less forgiving of multibillion-dollar losses at Elon Musk’s rockets and AI group. "}],[{"start":69.15,"text":"“The guy just got $70bn of funny money to play with to get us to space,” he said. “Of course, bond investors are not the same as equity investors. Equity investors, you can take them to Mars. Bond investors are, like, ‘where is my coupon?’”"}],[{"start":84.85000000000001,"text":"SpaceX received strong investor demand for the bond deal, allowing bankers to upsize it from $20bn to $25bn, but is having to pay a higher cost of borrowing than similarly rated companies. "}],[{"start":97.35000000000001,"text":"The SpaceX IPO was emblematic of a red-hot rally in tech stocks that has driven US stock markets to record highs in recent months as Wall Street shrugged off the fallout from the war in the Middle East."}],[{"start":110.00000000000001,"text":"Corporate bonds have also been caught up in a broad rally in risk assets given extra impetus by a resilient US economy. Highly rated US companies can borrow at less than 0.8 percentage points above US government bond yields, close to their lowest spread this century. "}],[{"start":126.75000000000001,"text":"But stocks have run into turbulence in recent weeks. Some investors have warned that a deluge of share issuance — with SpaceX’s float set to be followed by Anthropic and OpenAI — is testing the limits of demand, with the US equity market close to tipping into net positive equity supply after two decades of shrinking through corporate buybacks or go-private deals. "}],[{"start":148.15,"text":"Investors have also bet on higher interest rates from the Federal Reserve that could put pressure on company valuations, sapping enthusiasm for high-growth companies. SpaceX’s shares have fallen back since its post-IPO surge, trading at around $152 on Thursday down from more than $225 last week."}],[{"start":176.35000000000002,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782439051_6454.mp3"}

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