Oracle Corp. is spearheading a wave of 17 companies rushing to issue high‑grade bonds ahead of the U.S. midterm elections, marking the longest lineup since September. Oracle is selling $10 billion in investment‑grade dollar bonds and a similar amount in stock to fund AI infrastructure, according to filings. Other issuers include HCA Healthcare, L3Harris Technologies, GATX Corp., Carrier Global (its first deal since 2023), Otis Worldwide, Cheniere Energy, AEP Transmission, Textron, Eastman Chemical, and Hyatt Corp. Dealers had forecast about $45 billion of issuance this week as borrowers seek to lock in lower yields before potential post‑election volatility.
The surge follows declining bond yields since early October and the Fed’s unchanged benchmark rate, creating a favorable window for issuers. The trend is driven by massive AI data‑center financing needs, with Microsoft recently completing a $25 billion bond offering and Alphabet issuing euro debt at higher yields. Meta Platforms is also eyeing a $20 billion high‑grade bond sale across multiple currencies.
Analysts warn that the scale of AI‑related financing is straining credit markets across the quality spectrum.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing