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Technology giants are busy borrowing money for AI, and the global bond market is being "supported". Related bonds are at the bottom wherever they are issued

2026-07-17·newswire-us-stock-131522
Technology giants are busy borrowing money for AI, and the global bond market is being "supported". Related bonds are at the bottom wherever they are issued.

Financial Associated Press, July 17 (Editor Shi Zhengcheng) The bonds issued by technology giants to realize their artificial intelligence ambitions are becoming a significant drag on the performance of bond investors in New York, London, Tokyo, and Frankfurt this year.

The latest compiled data shows that since the beginning of 2025, Google parent companies Alphabet, Meta, Amazon and Oracle alone have issued bonds worth more than $300 billion, of which nearly $80 billion of debt was issued in currencies such as pounds, euros and yen. Almost overnight, these borrowers became significant issuers in the non-U.S. bond market.

Taking the pound bond market as an example, Alphabet has become the largest non-financial corporate issuer in the high-rated bond index; in the Swiss franc bond market, Amazon and Alphabet are among the four largest issuers.

The data also shows that among the ultra-large-scale cloud service provider bonds issued since the beginning of 2025, the credit spreads of about 79% of the bonds have expanded compared with the first day of listing. The prices of these bonds fell an average of 3.3 points from the issue price; in terms of total return, the average decline was 1.4%.

Simply put, these bonds are among the worst performers regardless of the market in which they are issued.

At the same time, many investors have little choice in whether to hold ultra-large cloud corporate bonds, especially passive funds that track corporate bond indexes and fund managers whose portfolio allocations are constrained by benchmark index weightings.

Bryn Jones, head of fixed income at Rathbones, a London-based asset management institution, told the media: "Large technology companies have to issue bonds in various currencies because the world's largest credit market (the U.S. dollar market) cannot digest such a huge scale of financing.

Some of these companies previously had zero stocks in the bond market in other currencies, and now they are suddenly issuing bonds in large quantities, which will put great pressure on these markets." "I'm not being alarmist and I'm not saying they're going to default," Jones added.

"It's just simple supply and demand: As supply goes up, prices go down." The latest sign of industry weakness comes as Amazon sells $25 billion in bonds this month, a deal that coincides with the traditional summer sales slowdown for corporate debt and sets a new low for subscription for big deals related to artificial intelligence.

Several Wall Street investment banks also mentioned this situation in research reports this week. JPMorgan Chase said that the current widening of bond spreads for ultra-large-scale cloud computing companies is the result of high-rated bond investors trying to rationally digest the accelerated pace of bond issuance.

Analysts at Barclays also warned that investors should not blindly chase these bonds because of widening spreads, given "rising concentration risks." Jack Daly, a portfolio manager at Twenty-Four Asset Management, said the firm has maintained a cautious stance on such bonds and has therefore avoided many new issuances.

He said: "The companies themselves are obviously very strong, but investors need to weigh the balance between the company's qualifications, the size of the bond supply and the ability of the market to absorb it.

People will still think that these bonds are cheap based on their credit ratings; but as long as supply continues to increase, they may remain undervalued." Market concerns about the artificial intelligence boom are also spreading outward from ultra-large-scale cloud computing companies with strong financial strength.

Just this week, data center operator Prime Data Centers postponed a planned bond issuance under Norwegian law. However, JPMorgan strategists also pointed out that despite the huge scale of bond issuance in the industry, insurance companies' allocation to this sector still has a lot of room to reach the concentration limit.

Even with credit spreads near historic lows, insurance companies remain among the most active buyers in the corporate bond market as bond yields remain historically high. (

#Stocks #Meta #Amazon #Google #AI

Full text

Technology giants are busy borrowing money for AI, and the global bond market is being "supported". Related bonds are at the bottom wherever they are issued

Financial Associated Press, July 17 (Editor Shi Zhengcheng) The bonds issued by technology giants to realize their artificial intelligence ambitions are becoming a significant drag on the performance of bond investors in New York, London, Tokyo, and Frankfurt this year. The latest compiled data shows that since the beginning of 2025, Google parent companies Alphabet, Meta, Amazon and Oracle alone have issued bonds worth more than $300 billion, of which nearly $80 billion of debt was issued in currencies such as pounds, euros and yen. Almost overnight, these borrowers became significant issuers in the non-U.S. bond market.

Financial Associated Press, July 17 (Editor Shi Zhengcheng) The bonds issued by technology giants to realize their artificial intelligence ambitions are becoming a significant drag on the performance of bond investors in New York, London, Tokyo, and Frankfurt this year. The latest compiled data shows that since the beginning of 2025, Google parent companies Alphabet, Meta, Amazon and Oracle alone have issued bonds worth more than $300 billion, of which nearly $80 billion of debt was issued in currencies such as pounds, euros and yen. Almost overnight, these borrowers became significant issuers in the non-U.S. bond market. Taking the pound bond market as an example, Alphabet has become the largest non-financial corporate issuer in the high-rated bond index; in the Swiss franc bond market, Amazon and Alphabet are among the four largest issuers. The data also shows that among the ultra-large-scale cloud service provider bonds issued since the beginning of 2025, the credit spreads of about 79% of the bonds have expanded compared with the first day of listing. The prices of these bonds fell an average of 3.3 points from the issue price; in terms of total return, the average decline was 1.4%. Simply put, these bonds are among the worst performers regardless of the market in which they are issued. At the same time, many investors have little choice in whether to hold ultra-large cloud corporate bonds, especially passive funds that track corporate bond indexes and fund managers whose portfolio allocations are constrained by benchmark index weightings. Bryn Jones, head of fixed income at Rathbones, a London-based asset management institution, told the media: "Large technology companies have to issue bonds in various currencies because the world's largest credit market (the U.S. dollar market) cannot digest such a huge scale of financing. Some of these companies previously had zero stocks in the bond market in other currencies, and now they are suddenly issuing bonds in large quantities, which will put great pressure on these markets." "I'm not being alarmist and I'm not saying they're going to default," Jones added. "It's just simple supply and demand: As supply goes up, prices go down." The latest sign of industry weakness comes as Amazon sells $25 billion in bonds this month, a deal that coincides with the traditional summer sales slowdown for corporate debt and sets a new low for subscription for big deals related to artificial intelligence. Several Wall Street investment banks also mentioned this situation in research reports this week. JPMorgan Chase said that the current widening of bond spreads for ultra-large-scale cloud computing companies is the result of high-rated bond investors trying to rationally digest the accelerated pace of bond issuance. Analysts at Barclays also warned that investors should not blindly chase these bonds because of widening spreads, given "rising concentration risks." Jack Daly, a portfolio manager at Twenty-Four Asset Management, said the firm has maintained a cautious stance on such bonds and has therefore avoided many new issuances. He said: "The companies themselves are obviously very strong, but investors need to weigh the balance between the company's qualifications, the size of the bond supply and the ability of the market to absorb it. People will still think that these bonds are cheap based on their credit ratings; but as long as supply continues to increase, they may remain undervalued." Market concerns about the artificial intelligence boom are also spreading outward from ultra-large-scale cloud computing companies with strong financial strength. Just this week, data center operator Prime Data Centers postponed a planned bond issuance under Norwegian law. However, JPMorgan strategists also pointed out that despite the huge scale of bond issuance in the industry, insurance companies' allocation to this sector still has a lot of room to reach the concentration limit. Even with credit spreads near historic lows, insurance companies remain among the most active buyers in the corporate bond market as bond yields remain historically high. (

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