{"id":266207,"date":"2026-06-06T10:59:00","date_gmt":"2026-06-06T14:59:00","guid":{"rendered":"https:\/\/news-you-need.com\/index.php\/2026\/06\/06\/ai-debt-floods-the-bond-market-and-fidelity-is-backing-away\/"},"modified":"2026-06-06T19:30:13","modified_gmt":"2026-06-06T23:30:13","slug":"ai-debt-floods-the-bond-market-and-fidelity-is-backing-away","status":"publish","type":"post","link":"https:\/\/news-you-need.com\/index.php\/2026\/06\/06\/ai-debt-floods-the-bond-market-and-fidelity-is-backing-away\/","title":{"rendered":"AI Debt Floods The Bond Market, And Fidelity Is Backing Away"},"content":{"rendered":"

AI Debt Floods The Bond Market, And Fidelity Is Backing Away<\/a><\/p>\n

https:\/\/www.forbes.com\/sites\/daraabasiita\/2026\/06\/06\/ai-debt-floods-the-bond-market-and-fidelity-is-backing-away\/<\/a><\/p>\n

Publish Date: 2026-06-06 10:59:00<\/a><\/p>\n

Source Domain: www.forbes.com<\/a><\/p>\n

Hyperscalers will sell hundreds of billions of dollars in bonds to build data centers this year. One of the country\u2019s largest bond managers says the math no longer favors buyers.<\/span><\/p>\n

NurPhoto via Getty Images<\/p>\n

The artificial intelligence boom has spent three years as a stock market story. This year it became a bond market problem.<\/p>\n

In its midyear outlook, published June 3, Fidelity told clients it is steering its core bond portfolios away from one of the fastest-growing slices of the investment-grade market: the wave of new debt that Amazon, Alphabet, Meta, Microsoft and Oracle are selling to pay for data centers, chips and the power to run them. The reason is not that Fidelity expects these companies to miss a payment. It is that buyers are no longer being paid enough to take the risk.<\/p>\n

\u201cInvestors aren\u2019t well compensated to own corporate securities right now,\u201d Stacie Ware, who co-manages the Fidelity Total Bond Fund, said in the outlook. She singled out the new AI deals. Because the five big technology borrowers carry high credit ratings, their bonds trade at only a small yield premium over U.S. Treasurys. That leaves little room for error and almost no room for reward.<\/p>\n

A wall of new supply<\/h2>\n

The supply is the part that is hard to ignore. Several hundred billion dollars of new debt is expected to come from hyperscalers and other large technology borrowers in 2026, according to Fidelity, all of it tied to the build-out of data centers and related infrastructure. The figure is not a forecast pulled from the air. The same five companies sold roughly $121 billion of U.S. corporate bonds in 2025, more than four times their average of about $28 billion a year between 2020 and 2024, according to a January report from BofA Securities cited by Reuters.<\/p>\n

The individual deals have been large enough to move the whole market. Oracle sold $18 billion of bonds in September. Meta followed in October with a $30 billion offering, the largest non-merger high-grade bond sale on record….<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

AI Debt Floods The Bond Market, And Fidelity Is Backing Away https:\/\/www.forbes.com\/sites\/daraabasiita\/2026\/06\/06\/ai-debt-floods-the-bond-market-and-fidelity-is-backing-away\/ Publish Date: 2026-06-06…<\/p>\n","protected":false},"author":1,"featured_media":266208,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/imageio.forbes.com\/specials-images\/imageserve\/6a2432b679bc6eacdcb88fcb\/0x0.jpg?format=jpg&height=900&width=1600&fit=bounds","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[20],"class_list":["post-266207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-artificial-intelligence"],"_links":{"self":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/266207"}],"collection":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=266207"}],"version-history":[{"count":1,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/266207\/revisions"}],"predecessor-version":[{"id":266209,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/266207\/revisions\/266209"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/266208"}],"wp:attachment":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=266207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=266207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=266207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}