Isn't it realistically only worth talking about SpaceX stock a few years out? The random walk the stock will do after an IPO seems very uninformative.
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SpaceX bond worth 10% less than issue price – heading for junk bond status
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Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#52> has now widened from the initial +175bps to a whopping +231bps doing more than two-thirds of the work. 2.31% spread over treasuries is heading for junk bond status?
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Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#53A stupid/naive question. Why does this affect SpaceX? They have their money(The IPO) Any third party trading value does not change that. Sure there may be individuals, officers of SpaceX who hold these instruments who will be negatively affective, but the company itself?
My best guess, it makes it harder to get loans in the future.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#54Isn't it realistically only worth talking about SpaceX stock a few years out? The random walk the stock will do after an IPO seems very uninformative.
How often do companies issue a $25B bond the same month that they IPO?
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#55Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#56Good thing there's a strong corporate governance model at SpaceX where the c-suite is fully accountable to an independent board of directors, who could use their majority voting power to remove that c-suite at will. Could you imagine the abuse of power that could happen if one person held over 50% of the voting power at such a company?
Is it abuse of power or company success? Wouldn’t shareholders vote out any crazy successful ideas Elon had? Likely bankrupting companies at their early stages?
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#57> has now widened from the initial +175bps to a whopping +231bps doing more than two-thirds of the work. 2.31% spread over treasuries is heading for junk bond status?
No, but the fact that they're the worst-performing BBB bonds, the company is burning cash, and the equity being down 38% since its peak after 1 month of trading is indicative of the market's…suspicions.
We'll see what ratings agencies think of the health of the company.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#58The worst about the SpaceX IPO is Nasdaq changing their inclusion rules for the Nasdaq 100. The index fast-tracked SpaceX stock for inclusion 15 days after the IPO, instead of the normal three-month seasoning period. They also changed its 10% minimum float rule to a 3x weighting boost for low-float stockss. So many people will unwillingly and prematurely invest into SpaceX, before it has any chance to discover its re…
Nasdaq, FTSE Russell, and CRSP all implemented fast-track options. Fortunately S&P kept its 12-month requirement.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#59Is this a real concern? SpaceX is doing amazing in terms of business.