{"id":74216,"date":"2026-11-05T14:08:20","date_gmt":"2026-11-05T18:08:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/spacex-default-risk-hits-record-peak-amid-tech-selloff-and-boost-mobile-pursuit\/74216\/"},"modified":"2026-11-05T14:08:20","modified_gmt":"2026-11-05T18:08:20","slug":"spacex-default-risk-hits-record-peak-amid-tech-selloff-and-boost-mobile-pursuit","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/spacex-default-risk-hits-record-peak-amid-tech-selloff-and-boost-mobile-pursuit\/74216\/","title":{"rendered":"SpaceX Default Risk Hits Record Peak Amid Tech Selloff and Boost Mobile Pursuit"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>SpaceX credit default swaps (CDS)<\/strong> surged <strong>24.5 basis points to a record 286.56<\/strong>, reflecting heightened investor anxiety over a potential <strong>$40 billion<\/strong> debt raise for <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a><\/strong> AI chips.<\/li>\n<li><strong>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>)<\/strong> and <strong>T-Mobile (<a href=\"\/stock\/TMUS\">TMUS<\/a>)<\/strong> may terminate <strong>Boost Mobile&#39;s<\/strong> network access agreements if <strong>Elon Musk\u2019s SpaceX<\/strong> acquires the carrier, potentially blocking Musk&#39;s entry into the <strong>$235 billion<\/strong> wireless market.<\/li>\n<li><strong>U.S. Defense Secretary Pete Hegseth<\/strong> faces a potential impeachment vote as soon as next week, following a &quot;blue wave&quot; in midterm elections and internal GOP backlash over the <strong>Iran war<\/strong>.<\/li>\n<li><strong>Private credit defaults<\/strong> recorded their largest quarterly jump, with <strong>KBRA<\/strong> data showing the <strong>trailing 12-month default rate<\/strong> hitting a peak of <strong>2.3%<\/strong> as high interest rates strain middle-market borrowers.<\/li>\n<\/ul>\n<h2>SpaceX Credit Risk Hits Fresh Peak<\/h2>\n<p>The cost of insuring <strong>SpaceX (<a href=\"\/stock\/SPCX\">SPCX<\/a>)<\/strong> debt against default has reached an all-time high as a broader technology-led selloff intensifies. Markit data shows five-year credit default swaps widened by <strong>24.5 basis points to 286.56<\/strong>, a significant jump from the <strong>110 basis points<\/strong> recorded in June.<\/p>\n<p>Investors are increasingly wary of the company&#39;s aggressive financing plans, which reportedly include a <strong>$40 billion<\/strong> debt package to fund <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> chip purchases for AI infrastructure. This massive borrowing comes as <strong>SpaceX<\/strong> capital expenditures reached <strong>$20.9 billion<\/strong> in fiscal 2025, significantly outpacing its cash from operations.<\/p>\n<h2>Telecom Giants Threaten to Block Musk&#39;s Wireless Entry<\/h2>\n<p><strong>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>)<\/strong> and <strong>T-Mobile (<a href=\"\/stock\/TMUS\">TMUS<\/a>)<\/strong> are reportedly prepared to drop <strong>Boost Mobile<\/strong> if the carrier is acquired by <strong>Elon Musk<\/strong>. <strong>SpaceX<\/strong> has been in talks with <strong>EchoStar (<a href=\"\/stock\/SATS\">SATS<\/a>)<\/strong> to buy <strong>Boost<\/strong> or lease its network to launch a hybrid satellite-terrestrial mobile service under the <strong>Starlink<\/strong> brand.<\/p>\n<p>However, industry analysts note that <strong>Boost\u2019s<\/strong> existing MVNO (Mobile Virtual Network Operator) agreements with <strong>AT&amp;T<\/strong> and <strong>T-Mobile<\/strong> likely contain &quot;change of control&quot; clauses. These provisions would allow the major carriers to terminate the contracts, effectively cutting off the terrestrial network access <strong>Musk<\/strong> needs to challenge the incumbents.<\/p>\n<h2>Political Turmoil: Hegseth Impeachment and Iran Talks<\/h2>\n<p>In Washington, <strong>Defense Secretary Pete Hegseth<\/strong> is under intense pressure following Republican losses in the recent midterm elections. <strong>Fox News<\/strong> reports that an impeachment vote could occur as soon as next week, with both Democrats and some &quot;America First&quot; Republicans like <strong>Thomas Massie<\/strong> blaming <strong>Hegseth<\/strong> for the unpopular <strong>Iran war<\/strong>.<\/p>\n<p>Simultaneously, unsealed court documents obtained by the <strong>Associated Press<\/strong> reveal that the <strong>U.S.<\/strong> held secret talks with <strong>Iran<\/strong> regarding the deportation of hundreds of Iranians during the conflict. The documents show that <strong>U.S. Immigration and Customs Enforcement (ICE)<\/strong> coordinated directly with the <strong>Iranian Embassy<\/strong> to arrange deportation flights, even as diplomatic tensions and military actions escalated.<\/p>\n<h2>Private Credit Market Shows Signs of Stress<\/h2>\n<p>The private credit sector is facing a &quot;reckoning&quot; as <strong>KBRA<\/strong> reported the largest quarterly jump in defaults in the history of its <strong>Direct Lending Index<\/strong>. The default rate has climbed to <strong>2.3%<\/strong>, matching its previous peak, with <strong>KBRA<\/strong> forecasting it could reach <strong>3.5%<\/strong> by the end of 2026.<\/p>\n<p>The deterioration is most visible in the <strong>technology and healthcare<\/strong> sectors, where many borrowers have <strong>interest coverage ratios (ICR) below 1.0x<\/strong>. This rising stress has led some major asset managers, including <strong>BlackRock (<a href=\"\/stock\/BLK\">BLK<\/a>)<\/strong>, to limit redemptions in their private credit vehicles as liquidity tightens across the <strong>$1.8 trillion<\/strong> direct lending market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways SpaceX credit default swaps (CDS) surged 24.5 basis points to a record 286.56, reflecting heightened investor anxiety over 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