JPMorgan Chase & Co. predicts that US investment-grade bond issuance will hit a new high in 2027, driven by big tech's spending on artificial intelligence and rising refinancing needs. The bank's strategists, including Nathaniel Rosenbaum, project that high-grade supply will reach $2.1 trillion next year, surpassing the expected $2 trillion in issuance this year.
The surge in bond issuance is largely attributed to the rapid expansion of AI infrastructure by major technology firms. This, combined with the need for companies to refinance existing debt, is expected to create a robust market for investment-grade bonds.
JPMorgan's forecast underscores the growing influence of AI on financial markets, as well as the broader economic impact of technological advancements. The bank's note highlights the importance of monitoring these trends for investors and market participants.