UBS raises debt issuance forecast for US tech firms
UBS now expects US tech giants like Meta, Amazon, and Alphabet to raise $360 billion in investment-grade bonds by 2026—up from their earlier $300 billion estimate.
Tech will make up a hefty chunk (about 20%) of all US investment-grade debt, which is projected to hit $1.8 trillion.
Risks loom large
With tech companies spending big on things like AI and data centers, they're expected to raise more investment-grade bonds—but UBS warns there are risks.
UBS is cautious about leveraged loan and private credit markets, saying AI disruption risk may be underpriced and could widen credit spreads.
Plus, AI is shaking things up so much that it could make refinancing loans tougher for some companies.
Hyperscaler capex expected to reach $770 billion by 2026
Hyperscaler capex (think massive investments in cloud and AI infrastructure) is expected to reach $770 billion in 2026—way above previous estimates.
To fund this, tech firms are issuing more public debt and even looking beyond the US dollar; for example, Alphabet recently joined a roughly $31.5 billion global bond sale that included issuance in sterling and Swiss francs.