"Musk's X Loan Sale Surges to $5.5B as Investors Clamor for Debt"

A group of banks led by Morgan Stanley is set to significantly increase the size of a loan sale related to Musk's social media platform X, following strong demand from investors that exceeded expectations. The banks originally planned to sell loans worth approximately $3 billion, but they received enough interest to sell additional debt. Their current target is to sell up to $5.5 billion in face value of debt, marking a significant step in reducing their exposure to X's risk.

Sources familiar with the matter said the final size of the sale is still being balanced as they are also seeking to minimize discounts when selling the loans. They stated that these banks hope to sell at a price of at least 95% of face value.

The increased demand for the loan sale comes as X continues to grow in popularity and attract more users. The platform has seen a significant increase in user engagement and revenue, which has led to a higher valuation and increased interest from investors.

The loan sale is part of a broader effort by the banks to reduce their exposure to X's risk. The platform has faced a number of challenges in recent months, including regulatory scrutiny and competition from other social media platforms. The banks are seeking to minimize their risk by selling a larger portion of the loans to investors.

The final size of the loan sale is still being determined, and it is possible that the banks will receive even more interest from investors. The increased demand for the loan sale is a positive sign for X and its future prospects.