Invesco's Brill Slams SpaceX $25bn Bond Sale

Invesco's Brill Slams SpaceX $25bn Bond Sale

Matt Brill, head of investment‑grade credit for North America at Invesco Advisers Inc., described SpaceX’s first high‑grade bond issuance as "really really disappointing" and "very sloppy" during an appearance on Bloomberg TV. The offering, sized at $25 billion, attracted nearly $90 billion in investor orders but was priced below comparable similarly‑rated debt, and the newly issued bonds weakened rapidly in the secondary market after pricing.

Brill raised the possibility that the disappointing market performance stemmed either from mistakes by the underwriting banks or from insufficient demand by traditional pension plans and insurance companies. Invesco, which manages approximately $2.5 trillion in assets and actively purchases corporate bonds, holds a position in the SpaceX bonds.

He also highlighted that US investment‑grade corporate bond spreads are currently at 0.74 percentage point, a level approaching multi‑decade lows. According to Brill, this environment has led investors to reduce credit exposure because the perceived downside risk outweighs upside potential, and he personally avoids excessive concentration in the technology sector.