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.
Big investors have grown increasingly nervous that companies rushing to raise money in a flurry of big equity and bond deals — seizing on record-high stock prices and credit spreads close to their tightest in decades — could signal a top in frothy markets.
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.