SpaceX Bondholders Face Huge Key Person Risk on Their Elon Musk Trip
About this episode
The episode discusses the risks faced by SpaceX bondholders due to their reliance on Elon Musk and the implications for credit ratings.
SpaceX bondholders are bolstered by a fat equity cushion, high-grade ratings and a relatively small amount of debt outstanding — but they depend on founder Elon Musk, according to Bloomberg Intelligence. “There’s a huge risk there, and the rating agencies have actually pointed this out in terms of governance,” Robert Schiffman, BI senior technology credit analyst, tells Bloomberg News’ James Crombie in this special episode of the Credit Edge podcast. “You’re absolutely on an Elon Musk trip — his vision and his ability to raise money is a large portion of this company right now,” adds George Ferguson, BI senior equity analyst for aerospace, defense and airlines. The trio also discuss poor secondary performance in SpaceX bonds, relative value compared with the equity, and credit-market risks if AI flops. See omnystudio.com/listener for privacy information.
People in this episode
Host: James Crombie
Guests: Robert Schiffman, George Ferguson
Topics covered
- SpaceX
- bondholders
- Elon Musk
- credit risk
- governance
- AI
Mentioned in this episode
Organizations: Bloomberg Intelligence, Bloomberg News, SpaceX
More episodes of The Credit Edge by Bloomberg Intelligence
- Bull Run in Loans Slams CLO Equity Buyers, Says Eagle Point’s Majewski
- Sona’s CEO Sees ‘Exciting’ Growth in Asset-Based Finance, SRTs
- Europe's Largest Asset Manager Warns of AI Debt Deluge Crowding Out
- Real Estate Is Next Bet for Debt Investors Avoiding Private Credit
Explore listener stats, chart rankings, contacts and more on the The Credit Edge by Bloomberg Intelligence podcast page.