US Corporate Bond Issuance Hits Record $1.88 Trillion
US investment-grade corporate bond issuance reached a record $1.88 trillion this year, driven largely by Big Tech borrowing to fund artificial intelligence development.
Refinitiv Limited reported that US investment-grade corporate bond issuance reached a record $1.88 trillion this year, surpassing the previous peak of $1.86 trillion set in 2020. This 18.7% increase is primarily driven by Big Tech companies borrowing to fund artificial intelligence ambitions.
Hyperscalers including Amazon.com, Alphabet, Meta Platforms, Microsoft, and Oracle collectively raised over $370.7 billion, accounting for approximately one-fifth of all US investment-grade issuance. Apple recently contributed to this trend by launching a seven-part US-dollar bond offering to raise about $7.5 billion.
Despite high demand and oversubscribed deals, analysts from Goldman Sachs and market strategists warn of potential risks. These include delayed AI monetization, mounting interest costs, and regulatory headwinds following the Democratic sweep in US midterm elections.
