Key facts
- Global corporate bond issuance hit a record $3.68 trillion in the first half of 2026.
- The surge is driven by major tech companies funding artificial intelligence investments.
- Amazon, Meta, and Nvidia were among the most aggressive issuers.
- Investors are beginning to demand higher yields due to concerns about debt levels and AI investment returns.
- Off-balance-sheet liabilities for five major tech players have ballooned to $1.7 trillion.
Global corporate bond sales reached a record $3.68 trillion in the first half of 2026, driven by a race among companies, particularly Big Tech, to fund artificial intelligence-related investments. This marks a 10% increase from the same period last year and continues a four-year expansion trend. Major players like Amazon, Meta, and Nvidia have aggressively issued billions in bonds to finance AI infrastructure, data centers, and semiconductor development. US companies now account for over 30% of global corporate bond issuance, a six-year high.
However, the rapid increase in debt issuance is raising concerns among investors, who are beginning to demand higher yields. Doubts about the profitability and timeline for monetizing AI investments are growing, exacerbated by deteriorating corporate cash flows. For some hyperscale companies, capital expenditures have surpassed operational cash flow, and projections suggest this trend could widen by 2027. The Bank for International Settlements has cautioned that a faltering AI boom could destabilize bond markets and the broader financial system, drawing parallels to the dot-com bubble.
Oracle has already experienced a credit rating downgrade and a significant stock price decline. Off-balance-sheet liabilities for the five largest AI-focused players—Alphabet, Microsoft, Amazon, Meta, and Oracle—have surged to $1.7 trillion, exceeding their on-balance-sheet debt. While Japanese firms like SoftBank Group and Panasonic Holdings are also accelerating their AI fundraising, the overall market sentiment is cooling as supply outpaces demand and questions linger about the sustainability of the current investment pace.