Reuters / MLQ News (citing Reuters/LSEG data) · 2026-08-22
Hyperscaler Bond Issuance Hits ~$220 Billion YTD as Spreads Widen and 78 of 91 Bonds Trade Below Issue Price
Reuters/LSEG data confirm that Amazon, Alphabet, Meta and Oracle's median 2–4yr spread has risen to 40 bps (from 30 bps in 2025), 5–7yr to 60 bps, and 20yr+ to 118 bps — with 78 of 91 hyperscaler bonds issued in 2026 now trading at higher yields than at issuance (median +22 bps). The 10-yr Treasury at 4.69% as of Aug 20 is compounding refi risk on ~$460 bn of direct debt across the cohort, signalling a structural cooling in demand even as supply accelerates toward a projected $250 bn by year-end.
247 Wall St. / Yahoo Finance · 2026-08-25
CoreWeave Carries $35 Billion in Debt and $640 Million Quarterly Interest Burden While Free Cash Flow Remains Negative
With $35 bn in gross debt, $640 mn in quarterly interest expense, and FCF still negative (per H1 2026 10-Q showing $14.0 bn in financing-activity inflows vs $14.1 bn capex cash outflow in just six months), CoreWeave remains the most leveraged pure-play AI infrastructure issuer. Fitch rates its unsecured HY notes BB-/RR4 at 7.0x EBITDA leverage; FCF is not projected positive until 2028. Its debt-funded GPU-collateral template is being replicated across the sector (e.g. Galaxy Digital's $3.5 bn junk-bond sale for a CoreWeave-anchored campus), amplifying systemic credit risk in AI capex financing.
S&P Global Ratings / Market Briefs · 2026-08-14
S&P Downgrades Oracle to BBB- (One Notch Above Junk) on $250 Billion Data-Center Buildout and $20+ Billion Annual FCF Burn
S&P cut Oracle to BBB- — the lowest investment-grade rung — after the company burned through more than $20 bn in FCF over four quarters, a deficit that could widen to $42 bn in FY2027. Oracle raised $43 bn in debt and $5 bn in equity in FY2026 and plans ~$40 bn more in FY2027. The downgrade, combined with Moody's existing Baa2/negative outlook, puts Oracle one notch from high-yield across two agencies; a further cut would trigger forced selling by IG-only mandates and materially raise funding costs on its $638 bn remaining-performance-obligations backlog.