Invesco’s Brill criticizes SpaceX bond sale performance

Investing.com -- An executive at Invesco Advisers Inc. criticized the performance of SpaceX's first bond sale on Thursday, calling the secondary market activity "very sloppy."

Matt Brill, head of investment-grade credit for North America at Invesco, described the deal as "really really disappointing" during a recent appearance on Bloomberg TV.

SpaceX received nearly $90 billion in orders for its $25 billion high-grade bond sale last week. The bonds appeared to price cheaper than similarly-rated debt. The new bonds weakened quickly in the secondary market after the sale.

Brill questioned whether the poor performance resulted from a mistake by the underwriting banks or insufficient demand from traditional pension plans and insurance companies. Invesco manages nearly $2.5 trillion in assets and purchases corporate bonds, including SpaceX bonds.

US investment-grade corporate bond spreads stand at 0.74 percentage point, approaching multi-decade lows. Brill said this has caused investors to reduce credit exposure "because there is a lot more downside than upside at this point." He added that he avoids too much concentration in the technology sector.

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