Earlier quoted context omitted.
How often do companies issue a $25B bond the same month that they IPO?
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SpaceX bond worth 10% less than issue price – heading for junk bond status
121–130 of 638 posts
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#122Earlier 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.
The market “settling on a price” includes the actions of short sellers.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#123Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#124The 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…
Rule changes like this create market inefficiencies that can be exploited by retail; if everything plays by constant rules, the vast majority of alpha gets concentrated in the institutions.
I love shaking up the firms. Gives normal people a chance to build wealth.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#125Earlier quoted context omitted.
The Nasdaq is a shit index to begin with. There are so many other options.
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.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#126Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#127Earlier quoted context omitted.
Index funds, for starters.
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.
Okay? Just because you don't have access to that investment vehicle doesn't mean others aren't using it. What type of reasoning is this? "I, personally, am not too badly effected, therefore it's not a problem"
And guess what, your VTI which does track NASDAQ as part of it's index is effected by this inclusion rule.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#128Earlier 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)
You can short it elsewhere. Schwab won't let you, because even if you're 95% right, you'll still probably lose 95% of your money... It's quite difficult to be 100% right...
You and your broker have to be pretty damn brazen to iron grip a highly liquid stock all the ways down to -95%.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#129Earlier quoted context omitted.
It almost was. S&P decided against it at the last minute, despite saying they would initially.
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.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#130The 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…
Rule changes like this create market inefficiencies that can be exploited by retail; if everything plays by constant rules, the vast majority of alpha gets concentrated in the institutions. I love shaking up the firms. Gives normal people a chance to build wealth.
Majority of alpha lol are you on drugs? Do you even know the risk adjusted rate of return most institutions earn…?
Buzz word filled posts like this are the most annoying to read on here