Big Tech drives US corporate bond sales to annual record high, data shows
AMZN•US investment-grade corporate bond issuance reached $1.88 trillion through November 4, up 18.7% year over year and above the prior record of $1.86 trillion set in 2020. Hyperscalers raised more than $370.7 billion, about a fifth of the total, as Goldman Sachs expects bonds to fund 35% of their 2027 capital expenditure.
1. Issuance hits a record
US investment-grade corporate bond issuance climbed to $1.88 trillion through November 4, surpassing the previous annual record of $1.86 trillion set in 2020. Issuance was up 18.7% from a year earlier, while the number of offerings fell about 4% to 1,084, lifting the average deal size to roughly $1.7 billion from $1.4 billion.
2. Hyperscalers lead borrowing
Amazon and Alphabet raised the most through bond sales among companies this year. Together with Meta Platforms, Microsoft and Oracle, hyperscalers raised more than $370.7 billion, or roughly one-fifth of US investment-grade issuance. Apple also tapped the market this week, with a seven-part US-dollar bond offering of about $7.5 billion.
3. AI funding risks
Goldman Sachs expects bond issuance to fund 35% of hyperscalers’ capital expenditure in 2027, roughly in line with this year. The bank flagged delayed AI monetization and rising purchase commitments as risks to further borrowing. The article also cites concerns about higher interest rates, debt-service costs and potential tougher AI regulation; Oracle’s five-year spread reached a record 325.45 basis points last month.
