US investment-grade bond sales have reached an annual record of $1.76 trillion, driven by a surge in artificial intelligence spending. Issuance surpassed the previous record of $1.75 trillion set in 2020, with over $300 billion of AI-related funding raised globally in 2026. Technology companies dominate the market, with nine offerings totaling at least $25 billion each.
Hyperscalers could spend up to $1 trillion annually for the next four years on AI infrastructure. The borrowing boom continues despite rising financing costs and investor concerns about market absorption. Four months this year set records for issuance, though activity slowed in October due to bond market volatility.
Recent Treasury yield declines have been offset by widening investment-grade spreads. Global syndicated bond issuance is within $70 billion of last year's record. US investment-grade bonds have lost 1.49% in total returns this year, yet investors continue to pour money into the asset class, with $235 billion in net inflows through September.
Analysts note that tech companies are largely rate-insensitive, while non-tech firms are adjusting to higher rates by using more equity financing for M&A.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing