Welcome to Markets Desk, your midday read on what's moving money and markets.
Pimco is sounding the alarm on credit, warning that corporate defaults are beginning to cycle back into debt markets after a prolonged period of calm. The bond giant is advising investors to rotate toward fixed income as equity valuations look increasingly stretched, arguing that high-grade bonds now offer both yield and protection that stocks simply cannot match at these levels.
Shifting to a story that touches every American's retirement math, the Social Security trust funds are now projected to reach full depletion in under a decade. That timeline puts serious pressure on Congress to act, and the longer lawmakers delay, the sharper the benefit cuts or tax increases required to close the gap. For anyone planning around that income, the window to adjust is narrowing faster than most realize.
And on the IPO front, the Financial Times is out with a deep look at how Wall Street structured what would become the largest public offering in history for SpaceX. Bankers had to convince institutional investors to absorb steep operating losses, accept a sci-fi growth narrative, and hand Elon Musk essentially unchecked control over the company. That they pulled it off says as much about investor appetite as it does about Musk's singular market gravity.
That's the tape. Markets Desk, signing off the floor.
