Shorting SpaceX
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Beneath the surface of buoyant credit markets, a shakeout is looming for leveraged deals made years ago and direct-lending funds now grappling with an extended period of investor withdrawals. Holly Kim, co-founder of Glendon Capital Management, said Wednesday at the Bloomberg Global Credit Forum in New York that there’s a “day of reckoning” coming for cable and broadband providers with some $230 billion of debt. Meanwhile, private credit firms enjoyed virtually non-stop growth in recent years without many losses, but now the tide is turning. Suzanne Gibbons, head of research at Davidson Kempner, warned that some of the capital structures out there — formed during the ultra-low rate period of 2020 and 2021 — “don’t make sense today.” What You Need to Know TodaySpaceX is seeking to raise $75 billion in an initial public offering that would be the biggest of all time. But not everyone is attending the party — and indeed, some may not want to. When SpaceX named the roughly two dozen firms handling its IPO, Jefferies Financial Group was conspicuously absent. But behind the scenes, bearish investors and some of Jefferies’ own bosses see that as a unique opportunity: Shorting SpaceX. Partners Group Holding is capping withdrawals at one of its evergreen private equity funds amid heightened redemption pressure. It’s the latest shoe to drop as investor anxiety over private credit vehicles spills over to other asset classes within private markets. The Swiss firm, one of Europe’s largest listed alternative asset managers, said its $8.6 billion Global Value SICAV fund was limiting redemptions to 5% of net asset value per quarter after withdrawal requests surged to an estimated 9.8% in the second quarter. The Swiss firm is one of the pioneers of evergreen funds, which operate indefinitely and typically allow investors to withdraw at least a portion of their investments quarter-by-quarter rather than locking up the capital for a set period. It has more than 30 such funds across five asset classes with more than $56 billion combined assets under management. The risk that Iran is covertly pursuing nuclear weapons is higher today than before the US and Israel launched surprise attacks on the Islamic Republic a year ago, according to western officials who cited new data circulated by a United Nations atomic watchdog. Before the June 2025 air assault that began a 12-day-war, that material was subject to weekly International Atomic Energy Agency inspection to ensure it wasn’t diverted for weapons. That is no longer the case. The White House has repeatedly insisted the 2025 attacks destroyed Iran’s nuclear capabilities. A US intelligence agency contradicted that assessment shortly after the bombing (its chief was later fired) and subsequent reporting also cast doubt on the claim. Eight months later, one of the reasons floated by Trump for starting the current war with Iran was to eliminate Iran’s nuclear program and take its stockpile of enriched uranium. Spring Sale: Save 60% on your first year Get the numbers behind the narratives. Enjoy unlimited access to Bloomberg.com and the Bloomberg app, plus market tools, expert analysis, live updates and more. Offer ends soon. Unlock 60% off
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