Amazon Among Hyperscalers Driving UBS Tech Bond Issuance Forecast Up to $360B
UBS raised its 2026 forecast for U.S. tech investment grade bond issuance to $360 billion from $300 billion, boosting its overall U.S. debt issuance outlook to $1.8 trillion with tech accounting for 20%. It cut its leveraged loan forecast to $360 billion from $450 billion, citing AI-related disruption risk.
1. UBS Raises 2026 Tech Bond Issuance Forecast
UBS boosted its forecast for U.S. investment grade tech bond sales to $360 billion from $300 billion, lifting its overall U.S. debt issuance outlook to $1.8 trillion this year, with the tech sector accounting for about 20%.
2. Hyperscaler Capex and Debt Issuance Projections
The bank projects aggregate capex by hyperscalers approaching $770 billion in 2026, 23% above prior estimates, and anticipates hyperscaler public debt issuance could rise by up to $50 billion to reach $240 billion.
3. Leveraged Loan Forecast Reduction
UBS cut its U.S. leveraged loan issuance forecast to $360 billion from $450 billion, citing potential wider spreads and reduced refinancing activity in leveraged loans and private credit markets due to AI disruption risk.
4. Implications for Amazon and Peers
Higher debt issuance capacity and elevated capex plans by Amazon, Meta and Alphabet signal ongoing funding needs for AI data centers and cloud infrastructure, which could influence their future financing strategies and cost of capital.