SpaceX launched a $25 billion bond sale just weeks after its record $86 billion IPO, prompting Allianz chief investment officer Ludovic Subran to warn that markets are slipping into bubble territory. Subran, who oversees €800 billion in assets, told participants at the FT Global Insurance Summit that the rapid succession of large equity and debt issuances signals a shift from a healthy boom to a stretched market.

Investors snapped up the bond offering, forcing banks to upsize it from $20 billion to the final $25 billion tranche, but SpaceX now faces a higher cost of borrowing than peers with comparable credit ratings. The deal arrives as US corporate spreads hover near historic lows—just 0.8 percentage points above Treasury yields—while equity valuations have begun to wobble.

Subran warned bondholders will tolerate far less loss than equity investors, noting Musk’s $70 billion “funny money” spend on rockets and AI. With SpaceX shares sliding from a peak above $225 to $154, the bond market’s appetite may erode if the company’s cash burn intensifies, putting pressure on pricing for upcoming tech issuances. Credit analysts will watch the coupon spread closely.