SpaceX Spectrum Purchase Triggers Decline in Verizon and AT&T Bonds
SpaceX announced plans to purchase U.S. spectrum to become a major mobile carrier, causing bond and share prices for Verizon and AT&T to drop.
Shares and bonds for major U.S. telecommunications providers declined Friday after Space Exploration Technologies Corp. announced it will purchase U.S. spectrum to transition into a major mobile carrier in the United States.
Verizon Communications Inc. saw its 6.05% note due in 2058 widen 22 basis points to 220 basis points by 10:30 a.m. in New York. This movement potentially marks a record spread for the security, which was originally issued in May. AT&T Inc. also experienced a decline, with its bonds widening by as much as six basis points, although trading volume for AT&T debt remained lighter than that of Verizon.
