Issued at par with a yield of 5.30 per cent in August, the bond's price has been grinding downwards since, its yield going in the opposite direction:
Tesla's $1.8bn unsecured bond[...]reached a near all-time high yield of 6.57 per cent this week.
trading 366 basis points above the 7-year Treasury note[...] isn't the highest the spread has ever been, but is a lot more than fellow cash-guzzling market superstar Netflix's 2025 unsecured bond, which is trading 202 basis points above its benchmark, according to Bloomberg.
If the bond holders are concerned about Tesla being able to repay the debt in full, then equity holders should be rattling in their sleek golf carts.
sauce: https://ftalphaville.ft.com/2018/03/20/1521544062000/Tesla-s-debt-price-is-deteriorating--Update-/
Submitted March 24, 2018 at 12:38AM by wanmoar https://ift.tt/2GkC9II
