NEW YORK (Reuters): Investors are demanding a record risk premium for holding Tesla Inc’s $1.8 billion junk bond after the electric car maker posted a $700 million first-quarter loss and signaled it may be in the market for more capital soon.
The price on Tesla’s 5.3% note due August 2025 slipped, nudging its yield to the highest in about six months at 8.51% in European trading.
Its spread, the measure of the premium in yield investors demand for the added risk of holding a bond from Tesla – rated six notches below investment grade by Standard & Poor’s and Moody’s – rather than a safer US Treasury security, widened by 3 basis points to a record 618 basis points.
By comparison, the spread on an average high-yield bond is 373 basis points, according to ICE BAML Index data, and for comparably rated “B-” issuers it is 402 basis points.
LAHORE (Monitoring Desk): Pakistan all-rounder Imad Wasim on Saturday, once again brushed aside the claims…
ISLAMABAD (Monitoring Desk): In a gripping showdown at the Sultan Azlan Shah Cup, Pakistan secured…
LONDON (AFP): Arsenal defeated Bournemouth 3-0 to move four points clear at the top of…
KARACHI (Monitoring Desk): In a remarkable display of skill and determination, young athletes from Karachi…
F.P. Report LAHORE: Prime Minister Muhammad Shehbaz Sharif on Saturday said that the country had…
F.P. Report PESHAWAR: Newly appointed Khyber Pakhtunkhwa Governor, Faisal Karim Kundi here Saturday night took…
This website uses cookies.