Expand chart
Data: FactSet; Chart: Axios Visuals

In mid-August the yield on WeWork's 2025 junk bond was 6.8%, and this week it hit 16.1%.

The state of play: WeWork's IPO was pulled at the end of September, depriving the company of billions of dollars in IPO proceeds as well as even more liquidity in the form of an attached loan commitment. That news drove the yield on WeWork's bonds up to 11.6%.

  • Since then, WeWork has revealed a stunning $1.25 billion quarterly loss; it is also now embroiled in an SEC investigation, as well as legal fights with disgruntled shareholders.

By the numbers: The bond traded this week at a price of $709, to yield 16.1%. It has 11 coupon payments left of $39.37 each, which means that if you hold it to maturity — and if it doesn't default — then you'll receive a total of $1,433.125 in principal and interest payments by the time the bond matures in May 2025. That's more than double the current price.

The bottom line: Before the IPO was pulled, WeWork had multiple funding sources, both in debt and equity. Now, however, Softbank seems to be the only institution willing to invest. If the Japanese tech giant ever tires of throwing good money after bad, then the chances of the 2025 bonds getting repaid in full look slim indeed.

Go deeper: WeWork to lay off 2,400 employees

Go deeper

Updated 4 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Axios-Ipsos poll: Federal response has only gotten worse — The swing states where the pandemic is raging.
  2. Health: The coronavirus is starting to crush some hospitals — 13 states set single-day case records last week.
  3. Business: Winter coronavirus threat spurs new surge of startup activity.
  4. Media: Pandemic causes cable and satellite TV providers to lose the most subscribers ever.
  5. States: Nearly two dozen Minnesota COVID cases traced to 3 Trump campaign events.
  6. World: Unrest in Italy as restrictions grow across Europe.

Ted Cruz defends GOP's expected return to prioritizing national debt

Sen. Ted Cruz (R-Texas) told "Axios on HBO" on Monday that he wishes reining in the national debt was a higher priority for President Trump.

Why it matters: Trump pledged during the 2016 campaign to reduce the national debt and eliminate it entirely within eight years, though he also deemed himself "the king of debt" and said there were some priorities that required spending. In the fiscal year that ended in September, the deficit reached a record $3.1 trillion.

Federal judge blocks DOJ from defending Trump in Carroll rape defamation case

E. Jean Carroll in Warwick, New York. Photo: Eva Deitch for The Washington Post via Getty Images

A federal judge on Tuesday dismissed the Justice Department's attempted intervention on behalf of President Trump in writer E. Jean Carroll's defamation lawsuit against him, after she accused him of raping her in a dressing room in the mid-1990s.

Catch up quick: The agency argued that Trump was "acting within the scope of his office" as president when he said in 2019 that Carroll was "lying" about her claim.