Key Points
- Analysts say U.S. corporate bond issuance could rise to about $2.46 trillion in 2026, driven largely by AI hyperscaler funding needs.
- AI leaders such as Amazon, Google, Meta, Microsoft and Oracle issued about $121 billion in bonds in 2025, far above past averages.
- Increased corporate borrowing linked to AI infrastructure may widen credit spreads and shape fixed-income markets.
Analysts predict U.S. corporate bond issuance will rise sharply in 2026, with spending by major AI hyperscaler companies a central force behind the increase.
Barclays projects total corporate bond supply could reach about $2.46 trillion this year, up roughly 12% from 2025, as firms raise capital for data center expansion and AI infrastructure. AI-linked capital expenditures — especially by big tech names such as Amazon, Google, Meta, Microsoft and Oracle — are expected to boost borrowing requirements compared with recent years.
These hyperscalers issued about $121 billion in bonds in 2025, far above their 2020–2024 annual average of $28 billion, underscoring how rapidly AI investment needs are driving market activity. Alongside AI-related demand, pent-up corporate mergers and acquisitions and refinancing existing debt are also anticipated to contribute to higher bond issuance volumes in 2026.
Bank of America analysts expect the five big hyperscalers to borrow about $140 billion annually in coming years, and possibly much more, potentially putting their issuance on par with large banks’ yearly totals.
Higher supply could widen credit spreads and increase demand for risk protection instruments like credit default swaps, as the highly visible deals by AI leaders influence fixed-income market dynamics.
The trend reflects broader shifts in how corporations fund AI infrastructure build-outs and signal changing patterns in U.S. corporate credit markets.
