Morgan Stanley: Global AI-Related Bond Issuance Could Approach $570 Billion in 2026

According to the latest forecast from Morgan Stanley, global bond issuance related to artificial intelligence (AI) could approach $570 billion in 2026, more than doubling from last year's figure.

Given that capital expenditures by hyperscalers are expected to surpass $1 trillion by 2027, Morgan Stanley believes the pace of bond issuance will accelerate further in the second half of this year.

As of the end of May this year, approximately $236 billion in AI-related debt financing had been issued globally, roughly four times the volume seen during the same period last year.

As tech companies continue to escalate their spending on AI, which increasingly exceeds what their own profitability can cover, debt financing is becoming an increasingly important source of capital for them.

Morgan Stanley noted that to diversify their funding channels, hyperscalers are increasingly issuing bonds outside of the US dollar market. For instance, giants like Google's parent company Alphabet and Amazon have issued substantial euro-denominated bonds in the European market. (Cailianshe)