Nvidia and SpaceX lead massive debt issuance as U.S. investment-grade bond issuance hits a record in June.

``` Nvidia and SpaceX each issued $25 billion in high-grade bonds, driving the U.S. investment-grade bond market to set a new monthly issuance record in June. This reflects how the AI infrastructure boom is deeply reshaping the debt market. On June 25, according to Bloomberg data, this month’s issuance of U.S. investment-grade bonds has already exceeded the previous all-time record and far surpassed dealers’ earlier forecasts for June. Bloomberg Intelligence analyst Noel Hebert stated, the total high-grade issuance this month is expected to surpass $200 billion. Strong market demand is a key support for this wave of issuance. Although current interest rates are much higher than in 2020, credit spreads remain near historical lows, effectively offsetting the pressure of high interest rates on borrowing costs and keeping borrowing conditions attractive for issuers. At the same time, expectations that the Federal Reserve may hike rates soon are prompting companies to lock in funding before financing costs rise further. AI arms race drives tech giants to ramp up borrowing The core driving force behind this round of investment-grade bond issuance is technology companies’ intense fundraising for AI infrastructure construction. This month, Nvidia and SpaceX each issued $25 billion in high-grade bonds. The combined $50 billion in bonds has been a key variable pushing overall issuance data higher, causing June’s total to far exceed dealers’ earlier forecast range. The debt market is increasingly being dominated by tech companies’ demand for AI investments. Large-scale computing power projects, data center expansion, and related infrastructure deployment all require sustained and massive capital inputs. The investment-grade bond market, with its size and liquidity, has become the financing channel of choice for such companies. From a full-year perspective, the 2026 investment-grade bond market has continued its strong start. January set a new monthly issuance record, and the pace has remained high for several months. So far the year’s total issuance has reached $1.15 trillion, matching the level of the highest full-year volume in history for the same period. According to Bloomberg data, the highest annual issuance on record is $1.75 trillion, which remains the market’s yearly record. If the current pace continues in the second half of the year, whether 2026’s full-year investment-grade issuance can challenge or even surpass this historical high will become a market focus. According to Bloomberg, analysts expect issuance momentum to continue into July, with an estimated fresh supply of about $100 billion that month. Although the rate environment is far from the ultra-low levels of 2020, the persistent narrowing of credit spreads has to some extent offset the impact of relatively high absolute interest rates. Winifred Cisar, Global Head of Strategy at CreditSights, noted: “Relatively stable and tight spreads have mitigated the shock from high rates.” Investors’ strong willingness to absorb new bond issues has also supported a virtuous market cycle. With perceived credit risk near record lows, institutional investors are willing to take on large volumes of supply at relatively low risk premiums, providing issuers with a rare low-cost funding window. According to Bloomberg, Fed Chair Kevin Warsh has explicitly stated his commitment to lowering U.S. inflation, leading the market to form expectations of a near-term rate hike. This expectation has directly catalyzed companies to accelerate financing—in anticipation of further borrowing cost increases, completing debt issuance sooner has become the common choice for many firms. Bloomberg Intelligence analyst Noel Hebert said, “Everyone wants to get their bonds out now.” He expects total U.S. high-grade bond issuance this month could exceed $200 billion. This logic echoes the borrowing boom in the near-zero rate environment after the 2020 pandemic, but the driving factor has shifted from loose monetary policy to preemptively hedging against future tightening. Risk Disclaimer The market has risks; investment requires caution. This article does not constitute personal investment advice, nor does it take into account individual users’ particular investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article fit their specific circumstances. Investments based on this article are at your own risk. ```