Forex
Big Tech Bond Boom Sparks Crowding Out Fears in Europe
US technology giants are increasingly turning to European bond markets to finance their massive AI and data centre investments. The shift is raising concerns that their growing demand for euro-denominated debt could compete with European companies and governments for limited investor capital.
Major US hyperscalers have already raised around €40 billion through euro-denominated bonds, known as 'reverse Yankee' bonds. Their share of the market has doubled from last year.
The European Central Bank says these bonds have improved credit quality in the euro investment-grade corporate market and increased activity at the longer end of the maturity spectrum.