By Zahra Tayeb | Updated on Oct 09, 2026 at 03:34 PM
Bonds issued by Verizon Communications Inc. and AT&T Inc. weakened on Friday, following SpaceX’s announcement that it will buy US spectrum that will help the company become a “ major mobile carrier ” in the US.
Verizon’s 6.05% note due in 2058 widened 22 basis points to 220 basis points as of 10:30 a.m. in New York, according to Trace data. If that level holds, it would be a record spread for the security — which was issued in May. AT&T’s bonds were wider by as much as six basis points in lighter trading than Verizon’s debt. The firms’ shares also sold off Friday.
AT&T and Verizon respectively have the third- and fourth-most debt in Bloomberg’s high-grade dollar corporate-bond index among nonfinancial firms.
SpaceX’s move “adds significant competition, potentially, to the big 3 wireless providers,” said Bloomberg Intelligence senior credit analyst Stephen Flynn.
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The new spectrum , which SpaceX is acquiring from investment firm Grain Management LLC, would allow the company to beam cell service to devices indoors from its Starlink network of over 10,000 satellites. Once SpaceX receives approval from the US Federal Communications Commission, it will combine its satellite-to-cell services with a terrestrial network that can connect devices everywhere.
But the effort could take massive investments. SpaceX in June sold $25 billion of bonds, just days after its record initial public offering of shares. Reports earlier this week that the company is in talks to raise $40 billion to buy chips from Nvidia Corp. sent a measure of SpaceX’s credit risk to new highs.
Flynn said that SpaceX’s ability to raise capital signals its potential to become a “significant player” in the wireless market.