AI TRENDS | Morgan Stanley Forecasts AI-Related Bond Issuance Near $570 Billion in 2026

Morgan Stanley forecast that global artificial intelligence (AI)-related bond issuance could approach $570 billion in 2026, more than doubling from last year. According to Odaily, the bank expects the pace of bond issuance to accelerate further in the second half of this year as hyperscalers’ capital expenditures are projected to exceed $1 trillion in 2027. By the end of May this year, about $236 billion in AI-related debt financing had been issued globally, roughly four times the amount raised over the same period last year, Morgan Stanley said. The bank said debt financing is becoming a more important funding source as technology companies’ AI spending continues to expand and increasingly exceeds what their profits can cover. Morgan Stanley added that hyperscalers are issuing more bonds outside the U.S. dollar market to diversify funding channels, citing examples such as Alphabet and Amazon issuing large amounts of euro-denominated bonds in European markets.