Ludovic Subran, Chief Investment Officer (CIO) of global asset manager Allianz Group, has warned that Elon Musk's SpaceX launching a corporate bond issuance of a scale seen immediately after a record-breaking initial public offering (IPO) is a clear signal that the market has entered a bubble phase.

Speaking at the Financial Times (FT) Global Insurance Summit on June 25 (local time), Subran stated that SpaceX raising funds by issuing bonds so quickly after a massive stock issuance is a "good example of moving from a healthy boom, an overheated boom, into bubble territory."

He pointed out that if SpaceX were to incur billions of dollars in losses, bond investors would be far less forgiving than equity investors.

"He (Elon Musk) just got his hands on an absurd amount of money, $70 billion, because he is taking us to space," Subran said. "Of course, bond investors are different from equity investors. Equity investors might take you to Mars, but bond investors are like, 'Where is my interest?'"

SpaceX decided to issue $20 billion in corporate bonds immediately after raising $86 billion in its IPO on June 12.

As demand for these bonds surged to $70 billion, SpaceX increased the bond issuance to $25 billion.

The U.S. corporate bond market has recently shown very low credit spreads, supported by a robust economy.

For high-grade corporate bonds, the difference from U.S. Treasury yields does not exceed 0.8 percentage points.

This is the lowest level seen since the 2000s.

SpaceX's stock price soared to $225 immediately after its IPO but has since declined, closing at $152 on June 25.

(Photo: AP, Yonhap News)