π¨Big Tech is borrowing at a record pace to fund the AI buildout:
Amazon, Alphabet, Meta, and Oracle have collectively issued $159 billion in bonds year-to-date, according to LSEG data.
Amazon leads with ~$57 billion in total issuance, followed by Alphabet at ~$52 billion, while Meta and Oracle have each issued ~$25 billion.
~$50 billion of the total has been raised in non-US dollar currencies, as companies tap European, Japanese, and other foreign debt markets to diversify their funding sources.
US technology companies now account for more than 20% of investment-grade bond supply in the euro, sterling, Canadian dollar, and Swiss franc markets, according to Goldman Sachs.
raising concerns about portfolio concentration among global fixed income investors.
Meta, Alphabet, Microsoft, and Amazon are expected to spend more than $2 TRILLION in CapEx over the next 3 years, meaning the borrowing spree is far from over.
The AI infrastructure is being financed by debt more than ever.