Tech giants including Amazon, Alphabet, Meta, Microsoft, Oracle, and Nvidia have issued approximately $320 billion in long-term investment-grade debt through late August 2026. This volume equals about 68-70% of the total new long-term US Treasury bond issuance for the same period.
The scale of borrowing has increased significantly in recent years. Before 2025, these companies issued less than $50 billion annually. In 2025, the figure reached $180-205 billion, nearly doubling by 2026. These firms now account for roughly 5% of the US investment-grade bond index.
JPMorgan analysts note that this surge in corporate debt competes with US Treasuries for capital, potentially driving yields higher. Credit spreads on these bonds have widened by 10-22 basis points. Additionally, broader AI-linked bond sales have surpassed $220 billion in 2026.
Despite the high volume, JPMorgan strategist Stephanie Aliaga suggests these companies could absorb an additional $1.5 trillion in debt without exceeding market average leverage ratios. Investors view these bonds as creditworthy assets, though their increased supply impacts the broader rates environment.
