Broadcom is seeking to raise $50 billion to fund its semiconductor activities for AI, while SpaceX is negotiating around $40 billion in financing to buy NVIDIA AI chips. SpaceX’s financing structure includes $30 billion in corporate bonds and $10 billion in bank loans, with Apollo Global Management participating, while PIMCO may also take part.
This development reflects AI investment needs that exceed internally generated cash flows. According to the Financial Times, SpaceX’s five-year credit default swap (CDS) spread surged to 194 basis points, up from 110 basis points in June, indicating that the market perceives increased credit risk amid larger debt issuances.
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$NVDA
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This development reflects AI investment needs that exceed internally generated cash flows. According to the Financial Times, SpaceX’s five-year credit default swap (CDS) spread surged to 194 basis points, up from 110 basis points in June, indicating that the market perceives increased credit risk amid larger debt issuances.
$AVGO
$NVDA
$SPCX