Verizon, AT&T Bonds Weaken as SpaceX Eyes US Mobile Push With Spectrum Buy
Updated
Updated · Bloomberg · Oct 9
Verizon, AT&T Bonds Weaken as SpaceX Eyes US Mobile Push With Spectrum Buy
3 articles · Updated · Bloomberg · Oct 9
Summary
Verizon’s 6.05% bond due 2058 widened 22 basis points to 220 basis points by 10:30 a.m. in New York, while AT&T debt widened by as much as 6 basis points.
SpaceX triggered the move by announcing plans to buy US spectrum and saying the purchase would help it become a “major mobile carrier” in the US.
Verizon’s spread would mark a record for the note if it holds; the bond was issued only in May.
The pressure extended beyond credit, with shares of both Verizon and AT&T also falling Friday as investors weighed a potential new wireless competitor.