Reuters · 2026-07-29
Hyperscaler Debt Binge Pushes Yields Up as Investor Demand Cools — 78 of 91 Bonds Issued in 2026 Now Trade Wide of Issue
Reuters/LSEG data show Amazon, Alphabet, Meta and Oracle have issued ~$194bn of bonds in 2026 through July 7—up 79% vs. all of 2025—yet 78 of 91 deals now trade at higher yields than at pricing (median +22 bps). Apollo data show cover ratios have fallen from ~5x in February to below 2x, signalling the first meaningful buyside indigestion for investment-grade AI-capex paper and a structural spread-widening trend that will raise future borrowing costs across the cohort.
Benzinga (citing Fortune / Moody's data) · 2026-07-28
Bond Markets Are Rethinking Big Tech's $1 Trillion+ AI Spend: Hyperscaler Spreads Widen to 78 bps, Sharpest Move Since April 2025
Published July 28, this piece synthesises the credit-market repricing in real time: average hyperscaler spreads have widened to ~78 bps over Treasuries from 50 bps two months prior—the sharpest move since tariff volatility in April 2025. Amazon's $25bn July deal attracted only 2.5x cover (vs. 3.2x in March) and required 18–21 bps of concession on long maturities, while Oracle (Baa2, negative outlook) and Ba3-rated CoreWeave face the steepest vulnerability as $1.2tn of off-balance-sheet lease commitments are increasingly treated as debt-equivalent by rating agencies.
CNBC (Moody's Ratings primary source) · 2026-07-24
Moody's Warns 'Unprecedented' AI Spending Threatens Credit Quality of Amazon, Meta, Alphabet, Oracle and CoreWeave; Flags $1.2 Trillion Off-Balance-Sheet Lease Wall
Moody's formal sector report (July 24) projects combined capex of $785bn in 2026 rising to ~$1tn in 2027, with direct debt across the six tracked firms already at $460bn and data-center lease liabilities at $1.2tn ($820bn tied to unstarted projects treated as debt-equivalent). Oracle (Baa2, negative outlook) and CoreWeave (Ba3, high-yield, complex GPU-backed private debt) are singled out as the weakest credit links; Alphabet simultaneously reported its first-ever negative free cash flow quarter (-$5.9bn), validating the warning in real time and setting the stage for the spread widening reported through July 28–29.