Edward Conard

Top Ten New York Times Bestselling Author

  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
Upside of Inequality Oxford Unintended Consequences

AI Summary. Large US cloud and artificial-intelligence companies have raised $48bn in European-currency bonds, more than triple the prior year's total, spread across €27bn, £13bn and CHF7.5bn. The issuance adds highly rated US borrowers to European credit indices and deepens the thin market for longer-dated maturities, with few signs so far of crowding out other issuers.

Huw van Steenis Apollo
Date Posted:

Hyperscalers have raised $48B in European-currency bonds this year, more than 3x all of 2025. They now account for 3% of euro IG issuance, 10% of sterling and 22% of Swiss franc, versus 8% in the US.

Are European bond markets funding the US AI buildout?

Core argument: Hyperscalers have raised $48 billion in bonds denominated in European currencies this year — €27 billion, £13 billion and CHF7.5 billion — more than triple the full-year 2025 total.

Hyperscalers have raised $48 billion in bonds in European currencies this year, already more than triple the entire amount raised last year. This breaks down as €27 billion, £13 billion, and CHF 7.5 billion. There are few signs of crowding out: non-hyperscaler IG issuance remains strong and little changed YoY, and corporate spreads remain tight. Rather, hyperscalers are adding highly rated US borrowers (AA- or higher) to European credit indices that have traditionally had more A-to-BBB exposure. Hyperscalers account for 7% of euro issuance with maturities of 10 years or more, versus 3% across all maturities, and 3% of the 10-year-plus euro IG index versus 1% of the overall index. This adds depth at longer-dated maturities—thin outside sovereign issuance—at a time when some governments, including the UK, have been shortening duration.

Takeaways by Macro Roundup® AI

  1. Hyperscalers have raised $48 billion in bonds denominated in European currencies this year — €27 billion, £13 billion and CHF7.5 billion — more than triple the full-year 2025 total.
  2. Hyperscaler issuance shows few signs so far of crowding out European borrowers, with non-hyperscaler investment-grade issuance little changed year-over-year and corporate spreads still tight.
  3. Hyperscalers account for 7% of euro issuance with maturities of 10 years or more versus 3% across all maturities, adding borrowers rated AA- or higher to indices traditionally weighted toward A to BBB.

Related Articles:

  • Financing the AI Buildout — The authors estimate roughly 57 gigawatts of operating US data center capacity against a planned development pipeline of about 509 gigawatts, which is not a completion forecast since projects may be delayed, scaled back, or abandoned. Their central scenario has 182.8 gigawatts of added capacity becoming operational through 2032, 117.2 gigawatts completed later, and 226.9 gigawatts never completed.
  • AI Set to be Largest CapEx Cycle Ever … and Soon Majority Externally Financed — Hyperscaler and data-center investment is tracking toward $1.5tn annually by 2030, which in real terms would exceed the 2005-06 housing boom, the 1990s fiber peak, and the 1882 railroad peak combined. External debt and equity are projected to fund close to 90% of the buildout, making it dependent on credit markets.
  • AI Is Driving Up Treasury Yields: ‘It Just Touches Everything’ — Investment-grade companies have sold nearly $1.5tn of bonds, up 36% from a year earlier, and some investors have sold US Treasuries to buy higher-yielding corporate debt. Bank of America economists estimate the surge in corporate-debt sales, along with more mortgage-backed securities issuance, pushed 10-year rates up by about 0.3 percentage point.
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