Yellow Flag: The Bond Market Is Becoming An AI Trade

AI-related debt issuance has exceeded $500 billion so far in 2026, with hyperscalers responsible for roughly 40% of the total, according to Goldman Sachs. While Big Tech generally has the capacity to service additional leverage, escalating AI capital expenditures increase the importance of monitoring free cash flow, borrowing levels, and investment returns. The scale of issuance could materially affect technology-sector credit conditions and leverage profiles.