Global zero-coupon convertible bond issuance reached $72 billion in the first half of 2026, putting the year on track to surpass the record $73 billion set in 2025. In the US alone, $57 billion was raised in the first half of 2026, a historic high for that period. Companies like Oracle ($5 billion), Akamai ($3.5 billion), CoreWeave ($4 billion), and Cloudflare ($2.5 billion) issued these interest-free bonds, demanding conversion premiums reaching as high as 60%. Investors accept these aggressive terms for exposure to AI-linked stock volatility, but signs of friction are emerging, including requests for capped calls to limit dilution and a slight increase in costs on recent deals.
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