Six US Firms Set European Bond Market Record
Six US companies issued debt in Europe on one day, a record driven by AI spending. Amazon raised £2.5 billion in its first sterling bond.
Six US companies completed European bond offerings in a single day. This marks the highest count of US issuers in the market on one day. Amazon and Uber led the activity. The surge is driven by AI infrastructure costs.
Amazon raised £2.5 billion, or $3.4 billion, in sterling bonds. This was its first issuance in that currency. Maturities range from three to 19 years. Uber Technologies also entered the euro market for the first time.
US Corporate Debt Hits Highs
US corporate issuance in Europe reached €149 billion this year. This equals $173.4 billion. The total is close to the 2025 record. Amazon’s new deal adds to its status as a major borrower.
Alphabet also entered the sterling market earlier this year. It followed a similar path to Amazon. Both companies seek diverse funding sources. The dollar market remains crowded.
Dollar Market Crowding Out Issuers
The US bond market faces technical pressure. AI capital expenditure consumes absorption capacity. Hyperscale tech firms create a crowding-out effect. This pushes up yields for other issuers.
CreditSights analyst Jordan Chalfin notes the pressure is painful. Mega-deals carry high new-issue premiums. These premiums push up the entire yield curve. Companies are diversifying to avoid these costs.
Euro Funding Offers Lower Costs
Euro market rates are lower for high-grade borrowers. This is a key advantage for multinationals. Société Générale strategist Juan Valencia confirms the logic. Liquidity in Europe is strong.
Amazon plans $220 billion in AI spending for 2026. Most goes to Amazon Web Services. The company issued $25 billion in dollar bonds last month. It also raised CHF 2.82 billion in May. GN auto markets/bonds: debt markets reports that these moves reshape global debt flows.
