Fixed-income experts say corporate bonds, particularly those issued by Alphabet, Amazon, Meta and Microsoft, are unusually attractive as the 10-year Treasury yield remains near 5 %. The VettaFi AI Hyperscaler Bond Index yielded 6.51 % at the end of September, while the four groups issued $93 billion of debt in 2025 compared with an annual average of roughly $35 billion between 2020 and 2024. This financial expansion comes with pressure on cash flow, including Meta’s free cash flow turning negative for the first time since its 2012 IPO. Oracle was downgraded by S&P Global Ratings, CoreWeave’s bonds plummeted and institutional investors are growing more skeptical about AI-related borrowing, which could exceed $4 trillion in issuance through 2030. Meta plans to raise up to $95 billion in equity to fund its investments, while diversification across securities, sectors and maturities remains essential to limit risk.
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