Gaming Bond Risk Premiums Surge 250 Basis Points as Prediction Markets Threaten Sector
Updated
Updated · Bloomberg · Jul 16
Gaming Bond Risk Premiums Surge 250 Basis Points as Prediction Markets Threaten Sector
1 articles · Updated · Bloomberg · Jul 16
Summary
Around 250 basis points more in risk premium is now demanded on junk-rated gaming bonds than two-and-a-half years ago, signaling investors have sharply soured on the sector.
prediction markets are driving that shift, with investors increasingly viewing them as a growing competitive threat to traditional gaming businesses and their debt.
The move stands out because spreads in most other sectors have tightened over the same period, leaving gaming bonds as a notable underperformer in the junk market.