Tech giants are issuing bonds at a breakneck pace to fund their artificial intelligence infrastructure. Morgan Stanley estimates roughly $570 billion in global AI-related debt issuance for 2026, with $236 billion already priced by end of May, four times faster than last year. Nvidia raised $25 billion in bonds in June and Amazon matched that amount in July, the latter having to sweeten yields to attract buyers. The order coverage ratio for hyperscaler bond issuances dropped from nearly 5x in February to below 2x by July, illustrating the fixed-income market’s fatigue as new debt continues to flood the market.
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