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

ft.com

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

#181

Post by soleveloper »

Octoth0rpe wrote: post #108
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.

> My best guess, it makes it harder to get loans in the future. Which is pretty important! It's my understanding that from all that money they raised during their IPO, a good amount of it went right back out the door again to pay off misc loans for the twitter acquisition. They may only have bought themselves 6 more months of time given their purported burn rate (mostly driven by AI investment), so they're going to n…

> They may only have bought themselves 6 more months of time given their purported burn rate

If they had only ~6 more months they (+auditor) had to issue a warning. The 6 is not a hard number, AFAIK, but surely a point where it must be reported.

So honestly, I doubt it's the case.

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

#182

Post by rightbyte »

iamshs wrote: post #155
swingandamiss wrote: post #119

[flagged]

Guy was doing Nazi salutes at Trump's inauguration. If he wanted support from normal people, he should have remained within normal political norms, not do Nazi salutes. I don't think it is normal to expect sympathy after that, people will be revolted and would want him to fail. They should not be judged for this opinion, it's pretty vanilla. Normal people still carry conscience, an innate justice system. Otherwise we…

If anything people are severly downplaying him being an unstable alt-nazi edgelord or whatever he self identifies as. As his fan club gets smaller it gets more fanatic, too. A lot of Twitter AI on Mars fan fic.

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

#183

Post by smallmancontrov »

bix6 wrote: post #169
tavavex wrote: post #137

Earlier quoted context omitted.

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"?

Isn’t that how capitalism works in general? Edit: thanks for the downvotes. Defenders of capitalism unite!!! lol. Free market right?

You're forgetting that whenever the incentives lead to bad places it isn't True Capitalism (tm).

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

#184

Post by ar_lan »

throw1234567891 wrote: post #164
_ink_ wrote: post #157

Earlier quoted context omitted.

I am really curious for what reason they choose to do it? Like what is in for Nasdaq?

The president may throw a tantrum that “some crazy democrat throws stones under the feet of that beautiful Elon, the most beautiful Elon we ever had”. Better do what the new Tzar wants. Dude was sent here apparently by the God, don’t mess with the God.

I thought Elon and Trump broke up?

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

#185

Post by quickthrowman »

groundzeros2015 wrote: post #129
quickthrowman wrote: post #114

Earlier quoted context omitted.

The S&P committee never said they would. Space X asked and the committee said no. They should not have asked.

It went through the formal process to adopt. Almost certainly public discussion online had an influence.

They don’t meet the inclusion criteria. The committee went through the motions to be diplomatic, not because there was ever a chance of it happening.

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

#186

Post by tjwebbnorfolk »

khurs wrote: post #107
tjwebbnorfolk wrote: post #97

Earlier quoted context omitted.

ok but who is forced to buy the nasdaq 100?

quick search: https://www.justetf.com/uk/search.html?search=ETFS&assetClas...

ok, who is forced to buy these ETFs?

These are all products that people and funds can choose to buy or not buy.

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

#188

Post by tjwebbnorfolk »

stackghost wrote: post #106
tjwebbnorfolk wrote: post #97

Earlier quoted context omitted.

ok but who is forced to buy the nasdaq 100?

Index funds, for starters.

Contrary to (apparently) popular opinion, index funds are not people.

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

#189

Post by wat10000 »

tyre wrote: post #62
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'm not an investor in SpaceX but I don't think shorting stocks at IPO should be allowed. The market should be given time to settle on a price, and it's unlikely that anyone needs to short it on day 1 for hedging. It's purely price speculation. Yeah, I know why people _want to_ (betting), but it doesn't serve a broader economic purpose.

Borrowing and selling are both pretty straightforward financial actions. It seems strange to say you're not allowed to combine the two.

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

#190

Post by tjwebbnorfolk »

stackghost wrote: post #171
quickthrowman wrote: post #115

Earlier quoted context omitted.

I don’t even have access to a NASDAQ fund in my 401K. You have to go out of your way to buy the NASDAQ 100, QQQ and /NQ or /MNQ futures are the most popular instruments for getting exposure. I have a tiny minute slice of SPCX from owning VTI total market ETF but my 401K holds no SpaceX.

>QQQ and /NQ or /MNQ futures are the most popular instruments for getting exposure. QQQ tracks the Nasdaq 100. It's an index fund. If the index includes a new ticker, then QQQ has to buy it. Buying QQQ doesn't seem like going out of one's way. I don't understand your comment. "ETFs and chill" is a very common investment strategy.

And who is forced to buy QQQ?
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