Hyperscalers have issued approximately $244 billion in bonds globally between early 2026 and July 2026, more than double the $108 billion issued throughout all of 2025. Meta set a record with a single high-grade issuance of $30 billion, while Morgan Stanley projects between $350 billion and $400 billion in AI-related bond issuance in U.S. markets alone by end of 2026. The tech sector now represents about 10% of the Bloomberg Corporate Bond Index, up from 9% in 2024, with annual hyperscaler issuance projected to exceed $300 billion on a sustained basis. This growing concentration exposes investors to supply indigestion risk, spread volatility, and a strong correlation between equity and bond markets if AI capex expectations reverse, eliminating the diversification benefit. Tokenized bond activity is also accelerating, with KfW issuing its third crypto bond in June 2026 and Keyrock issuing an on-chain corporate bond, raising questions about true diversification across traditional and digital asset portfolios.
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