Barclays: U.S. tech giants issuing bonds in the second half of the year are expected to put pressure on the market, with Microsoft expected to return to the bond market.

Barclays analysts said that the issuance of bonds by large US tech companies will continue in the second half of the year, including Microsoft expected to return to the bond market, which may continue to put pressure on valuations for the remainder of 2026. Barclays analysts Dominique Toublan and Andrew Keches wrote in a report that so-called super-large-scale cloud service providers such as Microsoft, Amazon, Alphabet Inc., Meta Platforms Inc., Oracle, and SpaceX have issued the equivalent of $218 billion in bonds globally so far this year, and this figure may increase to about $285 billion by the end of 2026. The analysts at the bank said the surge in debt supply related to artificial intelligence construction is pushing the high-grade bond market towards a "turning point." They downgraded their rating on high-grade tech bonds from "neutral" to "underweight." "Despite super-large-scale cloud service providers continuing to issue bonds on a large scale, deteriorating trading metrics indicate that market capacity is not unlimited," they wrote.