SpaceX bond worth 10% less than issue price – heading for junk bond status • Hacker News Board

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#131

Post by chasd00 » Wed, Jul 15, 2026, 2:58 PM UTC

formvoltron wrote: post #48

lucd wrote: post #41

The 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…

nah the very worst thing about the spacex ipo is that schwab won't allow me to short it. has nothing to do with the recency of the issue. today i shorted some skhy when i realized it's trading about 30% over the Korean share price (I could be wrong about that)

> nah the very worst thing about the spacex ipo is that schwab won't allow me to short it.

there are easier ways to make money than betting against Elon Musk. See Tesla and how well it worked out for short sellers there.

I like SpaceX as a company (especially Starlink) but it's over valued in my opinion. In about a year when there's a little bit of public financial history and the dilution is over i'll probably buy in.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#132

Post by hk__2 » Wed, Jul 15, 2026, 2:58 PM UTC

malfist wrote: post #123

NetMageSCW wrote: post #116

Earlier quoted context omitted.

Who forces them?

Literally the index. If you track the NASDAQ as part of your index you must obey it's inclusion rules.

Ok but there are very few indices following NASDAQ, compared to S&P 500.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#133

Post by dheera » Wed, Jul 15, 2026, 2:58 PM UTC

formvoltron wrote: post #48

lucd wrote: post #41

The 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…

nah the very worst thing about the spacex ipo is that schwab won't allow me to short it. has nothing to do with the recency of the issue. today i shorted some skhy when i realized it's trading about 30% over the Korean share price (I could be wrong about that)

You can synthetic short if you have options level 4

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#134

Post by rightbyte » Wed, Jul 15, 2026, 2:59 PM UTC

marcusverus wrote: post #90

lmohseni wrote: post #72

Earlier quoted context omitted.

[flagged]

If these figure represent actual deaths (big if), those people will have died because literally nobody on earth was willing to pay to keep them alive--yourself included.

A gigantic rug pull of bread and medicine is really not where we should blame the poor.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#135

Post by dools » Wed, Jul 15, 2026, 2:59 PM UTC

lucd wrote: post #41

The 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…

[flagged]

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#136

Post by groundzeros2015 » Wed, Jul 15, 2026, 2:59 PM UTC

jrflo wrote: post #125

tyre wrote: post #46

Earlier quoted context omitted.

The NASDAQ is up 27% in the past 1 year. S&P 500 up 21%, DOW +20%. So, it's doing pretty well!

NASDAQ is famously overweighted in tech. It saw an 80% drop in the aftermath of the dotcom bubble, while the S&P500 only had a 40% drop. It's a double edged sword, with the AI boom it's benefiting, if that reverses it will fall proportionally to those gains.

Yes. A strategy with tradeoffs does not make it a “shit index”.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#137

Post by tavavex » Wed, Jul 15, 2026, 2:59 PM UTC

lucd wrote: post #41

The 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…

So, the inclusion rules are basically "these are the hard limits that specify which stocks are eligible, unless someone really big and lucrative comes along, in which case it's whatever and we'll just adjust the rules to make them eligible"?

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#138

Post by z2 » Wed, Jul 15, 2026, 2:59 PM UTC

runarberg wrote: post #113

formvoltron wrote: post #48

Earlier quoted context omitted.

nah the very worst thing about the spacex ipo is that schwab won't allow me to short it. has nothing to do with the recency of the issue. today i shorted some skhy when i realized it's trading about 30% over the Korean share price (I could be wrong about that)

I for one am glad that you were not allowed to short SpaceX. People gaming the market for their own profits are the worst kind of exploiters and swindlers. You contribute absolutely nothing while siphoning the profits that workers make, lowering the salaries of everyone that actually works for a living. Note this has nothing to do with my feelings about SpaceX. I am Elon hater nr. 1 and hope SpaceX burns to dust, I o…

Putting one's money where their mouth is in expressing that a company's stock appears overvalued is very low on my list of "things that exploit the proletariat."

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#139

Post by jovial_cavalier » Wed, Jul 15, 2026, 2:59 PM UTC

NetMageSCW wrote: post #116

stackghost wrote: post #106

Earlier quoted context omitted.

Index funds, for starters.

Who forces them?

that is the whole point of an index fund - they buy whatever is in the index so you can get exposure to the total market. The scandalous thing is that an IPO'd company is going to have a lot of volatility for weeks to months after it goes public, so they typically do not allow any newly listed company to be included in the index for up to one year. This is for the benefit of retail. People have put their entire life savings into these funds because they are viewed as the optimal tradeoff between risk and return. Those people are now contractually obligated to either sell everything or expose themselves to spacex's IPO price movements.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#140

Post by dofm » Wed, Jul 15, 2026, 2:59 PM UTC

aynyc wrote: post #92

somat wrote: post #53

A 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.

This is about their bond, not that share price. If you are in the US, it's like having low credit score, everything you want to do financially such as leasing or financing a car, buying a house, etc.. will be more costly (higher interest rate) from the lender.

Except that it's not clear really that lenders will be able to judge on that basis alone. SpaceX is a different kind of unicorn: it's a government contractor run by the richest man in the world who controls a media echo chamber and gets people elected.

That article compares them to Oracle. Who are, as it goes, pretty similar: run by rich people with a media empire who have their teeth deep in government systems.

These bonds could get worse and worse but if US state and federal governments continue to put thumbs on scales it doesn't matter. The US free market isn't uniformly free.