This year, global bond issuance has reached an all-time high, driven by a surge in investments in the artificial intelligence (AI) industry. Major tech companies like Amazon and Google have emerged as significant players in the bond market, raising concerns about rising borrowing costs.
According to Bloomberg News on October 28, 2026, financial institutions, corporations, and governments have raised a total of $6.61 trillion (approximately 9,155 trillion won) through investment-grade and speculative-grade bonds this year. This marks an increase of about 15% compared to the same period last year, surpassing last year's total issuance with two months remaining in the year.
Notably, bond issuance has surged among hyperscalers operating large data centers and companies developing AI data centers. These firms have issued bonds totaling $368 billion (approximately 510 trillion won), more than six times the amount from the same period last year. As governments increase bond issuance to address budget deficits, AI companies are also entering the market for substantial fundraising, intensifying competition in the global bond market.
Big tech companies have expanded their influence in bond issuance, surpassing some major national governments. Based on cumulative issuance this year, Amazon ranks fourth globally, following the governments of Germany, the European Union (EU), and Italy, and has issued more bonds than the governments of the United Kingdom and France.
Alphabet, Google's parent company, is the second-largest issuer of bonds after Amazon. Among the top 10 bond issuers in the U.S., five are technology companies. In contrast, the share of traditional financial institutions in bond issuance has fallen to its lowest level in the past decade.
John Survidia, global co-head of investment-grade bonds at JPMorgan Chase, noted, "In just one year, there has been a fundamental reshaping at the top of the world's largest capital markets. A new long-term investment trend centered around AI has emerged."
However, the surge in bond issuance has made funding conditions challenging for big tech companies. Despite pouring massive capital into AI infrastructure, concerns about the uncertainty of recouping investments and generating profits have led investors to demand higher interest rates. In fact, U.S. data center developers had to offer interest rates of up to 7.2% on investment-grade bonds and up to 10% on speculative-grade bonds.
Additionally, high oil prices, geopolitical tensions in the Middle East, and tightening monetary policies from major central banks have compounded the burden of raising funds through bond issuance. While the expansion of AI investment is driving growth in the global bond market, the ability to support the increased borrowing with actual profits will be a key variable for the market moving forward.
* This article has been translated by AI.
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