Some SpaceX bonds have already sunk to junk-like territory

The value of SpaceXs longest-dated series of bonds shriveled to 90.7 cents on the dollar this week while their effective yield sank to a junk bond-like rate of 7.5%.　　This is despite bond investors lending Elon Musks company billions of dollars and signaling their willingness to delay principal maturity until 2056.　　The 9.3% collapse ranks SpaceXs long bonds dead lastamong 1,450 benchmark corporate notes rated US investment-grade “BBB.”　　The notes credit spread, i.e. the extra yield lenders demand for taking idiosyncratic SpaceX risk, has worsened from 175 basis points at issuance to 231.　　At the same time, the stock price of Musks company has also been cratering from its high and even trading below its IPO price, so it is not surprising to see the value of its bonds follow suit.　　Stock chart of SpaceX since IPO. Source: TradingView.A collapse from highs to lows at SpaceX　　For obvious reasons, bond prices typically correlate to quick downturns in common stock prices of the corporate issuer.　　Fear is often company-wide and not usually unique to its creditworthiness as distinct from its general business prospects.　　A bond trader at Post Oak Group explained the irony of SpaceX needing to raise capital from bond markets so early into its life as a