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Or sign-in if you have an account.SpaceX’s 10-year notes were trading at a spread of 1.57 percentage point on Thursday, after being sold on Tuesday at 1.4 percentage point. Photo by TIMOTHY A. CLARY/AFP via Getty ImagesCredit-default swaps tied to Elon Musk’s SpaceX have begun actively trading after the company sold high-grade bonds this week for the first time, according to people familiar with the matter, allowing investors to hedge against potential losses or to speculate on the creditworthiness of the firm.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorMajor Wall Street bond dealers are making markets on swaps tied to SpaceX after the rocket, satellite and AI conglomerate raised US$25 billion in its bond sale on Tuesday, said the people, asking not to be identified as the details are private.Those bonds have broadly been weakening relative to Treasuries since the offering, signalling some selling pressure on the securities.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againFor credit derivatives, dealers started sending out indications of levels at which they’d likely buy and sell protection — to investors even before the bond offering was announced, some of the people said. One list of prices from a dealer that Bloomberg reviewed had the cost of protecting SpaceX’s debt against default for five years at a mid-point of about 1.255 percentage point annually, or around US$125,500 a year for every US$10 million of principal protected.In contrast, the cost of guaranteeing the debt of Intel Corp., a computer chip maker with similar ratings, against default is more like 0.64 percentage point a year.A spokesperson for Spacex didn’t immediately respond to a request for comment.Credit derivatives allow a party to effectively buy insurance-like protection against a company defaulting on their debt. If a corporation doesn’t pay interest on its bonds, for example, the owner of credit derivatives can receive a payout. When a company’s credit becomes riskier, credit derivatives are often the first market to reflect investors’ jitters, because it can be easier to buy and sell derivatives than to trade actual bonds.SpaceX’s 10-year notes were trading at a spread of 1.57 percentage point on Thursday, after being sold on Tuesday at 1.4 percentage point. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.