Elon Musk’s SpaceX (NASDAQ:SPCX) raised $25 billion in bonds this week, shortly after a record $86 billion IPO.

One of Europe’s largest credit investors says the back-to-back fundraises are the moment markets tipped from boom into bubble.

Ludovic Subran, chief investment officer at German insurer Allianz SE (OTC:ALIZY), told the FT Global Insurance Summit the SpaceX deal shows markets shifting “from a stretched boom into bubble territory.”

Bond Investors Want Their Coupon

Subran’s warning hinges on a simple split: equity investors buy the dream, bondholders just want to get paid.

“The guy just got $70 billion of funny money to play with to get us to space,” Subran reportedly said. “Equity investors, you can take them to Mars. Bond investors are, like, ‘where is my coupon?'”

Allianz manages roughly 800 billion euros, making Subran one of the more consequential voices in global credit.

Investment-grade US corporates currently borrow at roughly 0.8 percentage points over Treasuries, near a multi-decade low. SpaceX paid 1.1 to 1.75 points, well above the 0.93 spread for similarly rated peers, according to the Financial Times.

The Money Furnace

The new bonds are mostly cleanup, refinancing $17.5 billion in junk-rated debt from the February xAI merger into cheaper investment-grade notes.

What worries bondholders is what comes next.

SpaceX posted a $4.3 billion quarterly loss before the IPO, with one former hedge fund manager calling it a “money furnace.”

Starlink is the only part of the business making money. Starship still loses billions, and xAI is burning cash at a staggering pace while trailing Anthropic, OpenAI and Google’s Gemini on every frontier AI benchmark.

On Polymarket, the probability that xAI has the best AI model is at 5%. Anthropic is in 1st with 67%, Gemini in 2nd with 14%, and OpenAI in 3rd with 10%.

One pillar of the SpaceX bull case is data centers in space, a Musk fixation that ties Starlink’s orbital infrastructure to xAI’s compute needs.

On Kalshi, odds of a one-megawatt orbital data center going live before 2033 have slid to 26%, with the 2031 contract sitting at just 23%.

More IPOs Incoming

With Anthropic and OpenAI both planning to IPO this year, the FT notes US equity markets are close to tipping into net positive supply for the first time in two decades, after years of corporate buybacks shrinking the float.

SpaceX shares have already felt it, sliding to $153 today from above $225 last week and shedding over 900 billion in market value.

For Wall Street, the question is whether the market has finally run out of buyers.

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