U.S.-listed companies have raised $131.0bn year-to-date from convertible bonds, a new annual record, with about $25bn issued in August that pushed the total past the prior peak set two years ago. The issuance surge is being driven by corporate funding needs for large AI-related spending and infrastructure, drawing new AI cloud entrants such as Nebius Group NV and renewed supply from investment-grade issuers. Alphabet sold the largest convertible of the year as part of an $85bn financing plan. We

U.S.-listed companies have raised $131.0bn year-to-date from convertible bonds, a new annual record, with about $25bn issued in August that pushed the total past the prior peak set two years ago. The issuance surge is being driven by corporate funding needs for large AI-related spending and infrastructure, drawing new AI cloud entrants such as Nebius Group NV and renewed supply from investment-grade issuers. Alphabet sold the largest convertible of the year as part of an $85bn financing plan. Wells Fargo's Craig McCracken said current issuance is well above historical norms on heightened AI financing demand and a return of investment-grade borrowers; Goldman Sachs strategist Spencer Rogers estimates roughly 44% of this year’s convertible issuance came from AI-related firms.