Cost to insure Skydance debt hits record high after Warner Bros takeover
SKYD•Five-year credit default swaps on Skydance hit a record 576 basis points, implying a 39.5% default probability. The combined company carries about $80 billion of debt, and its bonds have lost around 3 cents on the dollar since October 2.
1. Credit protection costs rise
Five-year credit default swaps on Skydance reached an all-time high of 576 basis points. LSEG-compiled data put the default probability implied by current levels at 39.5%. The combined company carries about $80 billion of debt, and Fitch and S&P Global rate its credit at BB, below investment grade.
2. Bond trading
Skydance corporate bonds have lost around 3 cents on the dollar since they started trading on October 2. The 2031 maturity last traded at 97.94 cents.
