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SoftBank Debtholders Hope For More Caution After WeWork Woes

  • Company’s CDS rose the most since last October in September
  • SoftBank’s loan-to-value ratio still at healthy level
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What Went Wrong With WeWork?
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Many bond market participants still think billionaire Masayoshi Son’s SoftBank Group Corp. is a relatively safe bet, but a bumpy few weeks for the corporate investor has prompted some to pine for a bit more caution.

The cost to insure the firm’s debt against nonpayment climbed the most in nearly a year last month after WeWork’s efforts to go public failed and Uber Technologies Inc.’s valuation sagged. The value of SoftBank’s stake in Alibaba Group Holding Ltd. also plunged about $6.1 billion in a single day following a tumble in the Chinese company’s shares on news that the White House is weighing limits on U.S. portfolio flows into China.