SpaceX default risk hits record high
The gist
SpaceX's five-year credit default swaps widened to a record 284.3 basis points a year on Thursday.
The gauge signals investor worry about Musk's borrowing, not a predicted default.
How it unfolded
- Oct 7, 2026SpaceX's five-year credit default swaps rose as much as 16.7 basis points to around 197.6 basis points a year, the highest intraday level since the swaps began actively trading in June, after reports the company was in talks to raise $40 billion to buy Nvidia chips.
- Oct 8, 2026The five-year CDS spread reached 194 basis points, up from about 110 in June, and the spread on SpaceX's 2056 bonds over Treasuries widened to 2.36 percentage points.
- Oct 21, 2026Spreads on SpaceX's 6.6% notes due in 2046 widened 0.09 percentage point to 2.64 percentage points after results beat analysts' estimates but the company said it was investing aggressively.
Key terms
- credit default swaps
- A financial contract in which the seller compensates the buyer if a reference debt defaults or another credit event occurs.
- basis points
- One hundredth of one percentage point, used to express changes in interest rates.
- investment-grade rating
- A credit rating class indicating a bond has low default risk and is considered safe for conservative investors.
Source: Wikipedia