The autumn selloff in AI stocks has shifted leverage in the convertible-bond market toward investors after issuers enjoyed unusually favorable terms during a fundraising surge. Dropbox’s $1.1 billion offering, priced Tuesday, carried a conversion premium of about 25%, below the 35% third-quarter average, while Akamai priced two convertible bonds at 1% interest, up from the 0.75% average. U.S. convertible issuance reached about $153.6 billion by the end of October, compared with $98.6 billion over the same period last year. About 70% of this year’s record issuance is AI-linked and 45% is tied to core AI infrastructure, according to Barclays. The FTSE Russell US Convertible bonds index has fallen about 17.5% from its June peak and is up just under 2% for the year, while October marked its worst monthly performance since 2008. Investors have recently favored issuers outside data centers, including Xcel Energy and SS&C, although analysts say neocloud companies could remain an important source of supply. In 2025, 46 convertible deals carried no interest, compared with 11 in 2024.