AI Investment Boom to Drive US Corporate Bond Issuance to $2.46 Trillion in 2026
US corporate bond issuance is projected to reach $2.46 trillion in 2026, up nearly 12% from 2025 estimates, driven primarily by AI hyperscalers' infrastructure investments. The five major tech companies issued $121.00 billion in bonds last year, far exceeding their 2020-2024 average of $28.00 billion annually. Net issuance is expected to grow over 30% year-on-year to $945.00 billion, with Bank of America Securities projecting potential annual borrowing could exceed $300.00 billion. Recent major deals include Meta's record $30.00 billion October issuance and Oracle's $18.00 billion September transaction, positioning these companies among the largest US investment-grade bond issuers.
*this image is generated using AI for illustrative purposes only.
The US corporate bond market is set for substantial expansion in 2026, with artificial intelligence investments driving unprecedented borrowing activity among major technology companies. Barclays analysts project total US corporate bond issuance will reach $2.46 trillion in 2026, marking a significant increase from current levels as companies accelerate their AI infrastructure investments.
Market Growth Projections
The projected growth represents a notable acceleration in corporate borrowing activity. Net issuance is expected to grow at an even faster pace, with analysts forecasting over 30% year-on-year growth to around $945.00 billion. This expansion is attributed to multiple factors including refinancing requirements, a revival in mergers and acquisitions, and elevated capital spending tied to AI investments.
| Metric | 2025 (Estimated) | 2026 (Projected) | Growth Rate |
|---|---|---|---|
| Total Issuance | $2.20 trillion | $2.46 trillion | ~12% |
| Net Issuance | Not specified | $945.00 billion | 30%+ YoY |
AI Hyperscalers Lead Borrowing Surge
The five major AI hyperscalers—Amazon, Alphabet's Google, Meta Platforms, Microsoft, and Oracle—have emerged as dominant forces in the corporate bond market. These companies issued approximately $121.00 billion in US corporate bonds last year, substantially exceeding their historical borrowing patterns. This figure represents a dramatic increase from their average annual issuance of roughly $28.00 billion between 2020 and 2024.
Bank of America Securities expects this borrowing trend to accelerate further, with average annual issuance estimated at around $140.00 billion over the next three years. The potential exists for annual borrowing to exceed $300.00 billion, which would position these AI hyperscalers among the largest issuers in the US investment-grade bond market, potentially matching or surpassing major US banks.
Recent Major Bond Transactions
Recent market activity demonstrates the scale of AI-related borrowing, with hyperscalers dominating large bond deals. These companies accounted for four of the five largest US high-grade bond deals in 2025, with most transactions completed in the second half of the year.
| Company | Deal Size | Month | Notable Details |
|---|---|---|---|
| Meta Platforms | $30.00 billion | October | Largest-ever non-merger investment-grade deal |
| Oracle | $18.00 billion | September | - |
| Alphabet | $17.50 billion | November | - |
| Amazon | $15.00 billion | November | - |
Market Impact and Investor Response
The surge in bond supply has created notable market effects, contributing to wider credit spreads and prompting some investors to seek protection through credit default swaps. The cost of insuring hyperscaler debt has risen since mid-2025, with Oracle experiencing the sharpest increase as concerns grow over the scale and pace of AI-related borrowing.
Legal and Regulatory Developments
Legal risks have emerged alongside the borrowing boom, highlighting potential challenges in the rapidly expanding market. Bondholders filed a lawsuit against Oracle this week, alleging losses tied to inadequate disclosure around the company's need to raise additional debt to finance its AI infrastructure expansion. This development underscores the importance of transparency in corporate communications regarding AI investment strategies and funding requirements.
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