SpaceX’s decision to launch a $25bn bond sale shortly after raising $86bn from its record-breaking IPO is a clear sign that markets are entering ‘bubble territory’, the investment chief at insurance group Allianz has warned.
SpaceX raising debt so soon after a blockbuster equity issuance was a ‘good example’ of markets shifting from ‘a healthy boom, a stretched boom . . . into bubble territory’, said Ludovic Subran, chief investment officer at Germany’s Allianz, which manages €800bn of assets.
Subran told delegates at this week’s FT Global Insurance Summit that bond investors would be less forgiving of multibillion-dollar losses at Elon Musk’s rockets and AI group.
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