Big Tech lifts US bond sales to record

U.S. investment‑grade corporate bond issuance climbed to a record $1.88 trillion through November 4, 2026, surpassing the previous annual high of $1.86 trillion set in 2020. The total volume was 18.7% higher than a year earlier, even as the number of offerings declined. The tally reflects strong demand for high‑grade corporate paper against the backdrop of large financing needs, particularly from major technology companies funding artificial intelligence investments.

While total issuance expanded, the number of individual deals fell about 4% to 1,084 over the same period. This shift pushed the average offering size up to roughly $1.7 billion from about $1.4 billion a year earlier, indicating a market dominated by larger, so‑called jumbo transactions from the biggest borrowers.

Hyperscalers such as Amazon.com (AMZN) and Alphabet (GOOGL) ranked among the largest single corporate borrowers in 2026. When combined with other major platforms including Meta (META) Platforms, Microsoft (MSFT) and Oracle (ORCL), these companies raised more than $370.7 billion through bond sales, accounting for roughly one‑fifth of all U.S. investment‑grade issuance so far this year.

Apple (AAPL) recently became the latest large technology company to access the bond market. A term sheet seen by Reuters showed Apple is seeking about $7.5 billion in a seven‑part U.S.‑dollar bond offering.

Market participants note that the wave of AI‑linked issuance has been absorbed, citing the oversubscribed nature of recent deals. They also observe that AI‑focused companies continue to issue in both the U.S. dollar and euro bond markets, underscoring sustained investor appetite for high‑grade Big Tech exposure.

Alongside record issuance, risk indicators have shifted for some of the largest AI spenders. Default‑insurance costs have risen, with Oracle (ORCL)’s five‑year spread reaching a record 325.45 basis points last month. Amazon (AMZN), Alphabet (GOOGL), Nvidia (NVDA) and Meta (META) also saw their credit‑default spreads hit record levels, though still below those recorded for Oracle (ORCL).

Analysts highlight delayed AI monetization and rising purchase commitments as key risks for further debt‑funded spending. They point to the question of whether heavy outlays on AI and data‑center infrastructure will generate cash flows quickly enough to cover interest costs in an environment where higher rates are a concern for heavily indebted issuers.

Looking ahead, expectations are that bond markets will remain an important funding channel for large technology groups. Forecasts indicate that about 35% of hyperscalers’ capital expenditure in 2027 will be financed through bond issuance, a share described as roughly in line with this year’s level, suggesting continued reliance on public debt markets to support AI‑related investment.