Big Tech’s AI debt wave is threatening to swamp credit mkts

A flood of debt sales from Big Tech risks overwhelming buyers and could weaken the credit market

- RONAN MARTIN

A FLOOD OF debt sales from Big Tech risks overwhelming buyers and could weaken the credit market on both sides of the Atlantic.

That’s the warning from Wall Street and investors, if the recent pace of mega bond offerings from the likes of Alphabet and Meta Platforms continues in 2026.These sales have capped a record year of global issuance.

With tech firms expected to turn to debt for as much as $1.5 trillion by 2028 to fund expansion in artificial intelligence and data centers, that could widen spreads across the whole market, Morgan Stanley argues. Bond buyers are starting to worry about being compensated for the risks of a bubble in the sector, given recent turmoil in tech stocks.