Big Tech Debt Flood Is Taking Over Risk In Market: Credit Weekly

Big Tech companies now account for 8.6% of the duration-times-spread risk in the US high-grade corporate bond market, surpassing the 7.3% held by the six largest banks, per Barclays analysis. Alphabet raised its 2026 capex forecast to up to $205 billion, sparking concerns about further debt issuance, with Barclays projecting about $285 billion in global investment-grade debt from hyperscalers this year. Tech investment-grade spreads have widened to around 89 basis points from 76 basis points at the start of the year, and recent deals from Amazon and SpaceX have seen weak demand, signalling credit market fatigue from AI-fueled borrowing.