BNP Paribas Warns AI-Driven Bond Issuances Could Signal End of Credit Market Rally

BNP Paribas predicts that the prolonged upswing in corporate bond markets is nearing its end as major tech firms, known as hyperscalers, prepare to flood the market with approximately $400 billion in bond sales next year. This surge contributes to a record $3.7 trillion in net fixed income supply. The European Central Bank has observed a similar pattern, noting that US tech companies now represent nearly 10% of new euro-denominated bond issuances.