SpaceX Default Insurance Soars

It's Benzinga, bringing Wall Street to Main Street. The cost of insuring SpaceX debt against default hit a record high Thursday as Democrats' election sweep raised political risks for Elon Musk's businesses, according to Benzinga. SpaceX's five-year credit default swaps climbed to 284.3 basis points. According to Bloomberg, default protection for major AI hyperscalers has become cheaper since the election. Texas Governor-elect Gina Hinojosa has promised to freeze new data center approvals, While Democratic control of Congress could bring greater scrutiny of Musk's businesses. In a post on X Wednesday, Musk wrote, Data centers in space looking pretty appealing right now. Musk warned of funding challenges for AI cloud providers, but argued SpaceX was different because of its investment-grade rating and diversified revenue, even as its default insurance costs reached record levels. Fitch maintained SpaceX's investment-grade rating following a $40 billion GPU lease commitment. For all things money, visit Benzinga.com.