Cost to insure Skydance debt hits record high after Warner Bros takeover

Skydance

14/10/2026 12:16

** Skydance corporate bonds have lost around 3 cents on the dollar since October 2, when it started to trading
** The 2031 maturity US69932AAT25=TE last traded at 97.94 cents, as per Tradeweb data 
** Paramount Skydance completed its blockbuster $110 bln takeover of Warner Bros Discovery on October 6, with new co named Skydance 
** Combined co carries debt of about $80 bln 
** Both Fitch and S&P Global see Skydance's credit rating at "BB", which places it under the "junk" category 
** 5-year credit default swaps (CDS) hit an all-time high of 576 bps, according to S&P Global Market Intelligence data 
** The current levels of CDS implies a default probability of 39.5%, according to LSEG-compiled data 
** The stock SKYD.N was trading at $7.60 premarket 


 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com))