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Posted June 26, 2026 at 11:00 am
And that could make diversified portfolios less diversified than they look.
Bond sales by US investment-grade companies just hit another June record, fueled by huge investor demand and a wave of borrowing tied to the AI spending boom.
Issuance has reached $175 billion so far this month – up 60% from the same time last year, and enough to beat the previous June record set during the ultra-low interest rate era of 2020.
The surge shows how much tech companies are leaning on debt markets to fund their AI ambitions. Nvidia and SpaceX each sold $25 billion worth of high-grade bonds this month alone. They join Alphabet, Amazon, Oracle, Meta, and a growing list of tech firms that have tapped the bond market this year.
In fact, Morgan Stanley expects global AI-related borrowing to more than double this year, hitting nearly $570 billion. As that supply swells, bonds linked to AI will increasingly carry a bigger weight in corporate bond indexes.
Here’s the catch: shares from those AI-focused tech firms already dominate stock indexes. And stocks and bonds are supposed to balance each other out, rather than move together. So now, if AI enthusiasm fades, portfolios that look diversified could end up taking a hit from both directions.
What’s more, as tech giants increasingly lean on debt markets to fund their AI investments, the more exposed they become to shifts in US interest rates and government bond yields.
That means a more hawkish Fed could lift their cost of capital, raising the bar for the returns those AI investments need to deliver – a concern that’s already weighing on investors’ minds.
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Originally Posted June 26, 2026 – AI Is Taking Over The Bond Market Too
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