TLDRs;
- AI investment is driving US corporate bond issuance to a record US$1.8T in 2026, says JPMorgan.
- Tech firms will issue US$250B, rising 61% as AI infrastructure spending intensifies.
- Net bond supply may hit US$800B, the highest since 2020, testing credit markets.
- Banks will reduce issuance as other sectors sharply increase borrowing for AI and refinancing.
US bond markets are gearing up for an unprecedented wave of issuance as companies race to fund artificial intelligence development, large-scale refinancing needs, and renewed deal-making.
According to JPMorgan Chase, investment-grade (IG) corporate bond issuance is set to climb to US$1.8 trillion in 2026, marking the highest annual total ever recorded and eclipsing the previous 2020 peak.
The bank’s analysts attribute the expected surge primarily to the explosive pace of AI investment across nearly every major industry. Rapid adoption of AI infrastructure, spanning data centers, chips, cloud systems, and digital infrastructure, is pushing companies toward larger and more frequent debt raises. Combined with rising merger and acquisition activity and a sizeable maturity wall on the horizon, the stage is set for a historic expansion in corporate borrowing.
Tech Sector Leads the Charge
JPMorgan projects that the technology, media, and telecommunications (TMT) sector will be at the center of the issuance boom, collectively borrowing around US$400 billion in 2026. Technology firms are expected to account for the bulk of that amount, issuing US$250 billion, a striking 61% jump from 2025 levels.
This acceleration reflects a new reality for tech giants where competing in AI now requires massive capital spending. With AI infrastructure costs climbing and demand for accelerated computing surging, many companies are turning to bond markets to secure long-term funding at scale.
Adjacent sectors are also gearing up for heavier issuance. Consumer companies may increase borrowing by 44% to US$140 billion, while media and entertainment firms could grow issuance by 38% to US$85 billion. Telecom companies, another AI-linked sector, are estimated to issue US$56 billion, up 25% from the previous year.
Markets Face a Supply-Heavy 2026
Beyond gross issuance, JPMorgan expects net corporate bond supply to rise sharply, reaching US$800 billion, the highest since 2020.
With bond maturities staying above US$1 trillion for the year, refinancing will remain a key driver of issuance pressure.
However, this supply influx may test the resilience of corporate credit markets. Investment-grade spreads are currently near historical tights, buoyed by strong fund inflows and solid corporate balance sheets. But an environment flooded with new bonds could challenge valuations, particularly if inflation re-accelerates and leads to tighter monetary policy.
Credit Strategy Shifts Ahead
A record bond calendar is already prompting strategic shifts across the credit ecosystem. Underwriters are planning for a busy 2026, anticipating higher deal volumes and stronger competition for investor attention.
Credit portfolio managers, meanwhile, may lean toward short-duration, high-quality tech names to capture yield while protecting against rate volatility.
With AI capital expenditures reaching levels described as “unprecedented,” investors are increasingly focused on identifying the strongest players across AI supply chains and avoiding firms whose fundamentals can’t justify aggressive borrowing.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
