The Julia La Roche Show · Wednesday, September 16, 2026
Jeffrey Gundlach suggested that the bond market is not aligning with the credit ratings assigned to certain companies, citing SpaceX and Oracle as examples. He noted that SpaceX's bonds widened significantly, implying a lower credit quality than its rating, and that Oracle's bonds also widened considerably after receiving a junk bond rating.
“It's like when SpaceX borrowed a bunch of money, the bonds widened tremendously to levels about three notches lower in credit quality. But the, the triple B minus, the lowest rating of investment grade. And I have a feeling that that rating was encouraged by some persuasion of the rating agencies because the bond market isn't buying it at all.”
“And the same thing happened with, uh, uh, Oracle, where it got a junk bond rating, but the bonds widened out tremendously right after issue. But the bond market is saying, 'These ratings don't make sense to us.'”