Big Tech set to drive US corporate bond sales to annual record high, data shows
TLT•US investment-grade corporate bond issuance reached $1.88 trillion through November 4, surpassing the previous annual record of $1.86 trillion. Hyperscalers raised more than $370.7 billion, roughly a fifth of issuance, while Goldman expects bonds to fund 35% of their capital expenditure in 2027.
1. Issuance sets a record
US investment-grade corporate bond issuance climbed to $1.88 trillion this year through November 4, exceeding the previous annual record of $1.86 trillion set in 2020. The number of offerings fell about 4% to 1,084, while average deal size rose to roughly $1.7 billion from about $1.4 billion a year earlier.
2. Big Tech 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 a fifth of US investment-grade issuance so far this year. Apple also began a seven-part US-dollar bond offering this week to raise about $7.5 billion.
3. Financing and risk
Goldman Sachs expects bond issuance to fund 35% of hyperscalers’ capital expenditure in 2027, roughly in line with this year. The article cites concerns about higher interest rates, delayed AI monetization and rising interest costs; Oracle’s five-year default-insurance spread hit a record 325.45 basis points last month.
