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SpaceX’s Credit Risk Surges
October 8, 2026
SpaceX’s credit risk rose to a record level on Wednesday after reports that the company is considering raising $40bn to purchase Nvidia chips. This raised concerns about the scale of leverage being added to an already debt-intensive AI infrastructure buildout. As seen in the chart above, SpaceX’s 5Y CDS widened by as much as 16bp to ~197bp, the highest intraday level since the company’s credit derivatives began trading in June.
According to reports, the proposed financing could comprise around $10bn in bank loans and $30bn in investment-grade bonds, although discussions remain preliminary. Analysts noted that the financing could potentially be structured through a special-purpose vehicle, similar to arrangements used for xAI, which could limit the debt directly sitting at SpaceX’s parent level. Investors are increasingly focused on the pace of debt issuance and leverage rather than prospective long-term AI cash flows. The developments highlight growing concerns that the enormous capital requirements of AI infrastructure could pressure credit markets as companies continue financing chip, data-center and computing capacity expansion.
SpaceX bonds also weakened with its 6.6% 2046s down 0.4 points at 86.4, yielding 8.0%
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-Vandit P
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