SoftBank Group Corp.'s bond risk has climbed to a three-year high as founder and Chairman Masayoshi Son faces a perfect storm of troubles with its Chinese and U.S. investments and a push by the government to cut phone rates that threatens earnings at home.
The cost to insure the mobile carrier's notes against nonpayment jumped 84 basis points in September to 260, the highest since November 2012, according to CMA prices. SoftBank is the riskiest company on the Markit iTraxx Japan credit-default swap index, which climbed 19 basis points in the period.
Billionaire Son saw the worth of his two biggest holdings plunge. A cooling Chinese economy has cut growth prospects for Alibaba Group Holding Ltd. and a turnaround at money-losing Sprint Corp. in the U.S. has yet to materialize.