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.
SoftBank Group is having to face volatile market moves as its business increasingly takes on the characteristics of an investment firm, and it's committed $38 billion of its capital for a new technology fund. But in spite of scares related to its marquee investments such as WeWork and Alibaba, a debt gauge that analysts look at to judge SoftBank's financial health suggests it remains in decent shape.