- Tech companies have ramped up bond sales this year even as financing costs rise, breaking the usual pattern of issuers slowing down when yields climb.
- Talk of potential big financings from SpaceX and Broadcom intensified investor concern about the volume of debt ahead.
- Hyperscalers are paying higher yields to borrow for AI investments in data centers and AI chips, based on expected large profits.
- OpenAI expects its annualized revenue to reach $70 billion or more by the end of the year.
Quotes
“When financing gets more expensive, companies usually slow down their bond sales.”
“Tech companies have instead been ramping up this year, and talk this week of potential big financings from SpaceX and Broadcom Inc. only amplified investor fears about the wave of coming debt.”