Alphabet and Amazon bond sales lift borrowing costs in Canada and beyond

Alphabet and Amazon have raised tens of billions of dollars in bond markets outside the United States, a funding push linked to heavy artificial intelligence spending that is now reshaping credit conditions in Canada, the UK, Switzerland and other markets. In Canada, Alphabet sold C$8.5 billion in May and Amazon followed a month later with a C$14 billion deal, both record-setting at the time, pushing up spreads and forcing local issuers to offer higher yields. The pressure became pronounced enough that Canada’s AA-rated index spread moved above the lower-rated A-rated index, an unusual inversion that left domestic borrowers rethinking issuance timing. The broader financing wave extends beyond Big Tech: Advanced Micro Devices also sold $4.75 billion of dollar-denominated bonds in the US, its largest-ever bond sale, and said the proceeds would go toward corporate purposes including debt repayment.

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Alphabet and Amazon bond sales lift borrowing costs in Canada and beyond - CoinPost Terminal