Jul. 17 at 11:32 PM
Big Tech Bond Demand Is Cooling — A Warning Sign for AI Spending?
Investor appetite for Big Tech bonds is weakening.
Bond deals from Amazon
$AMZN, Apple
$AAPL, Meta
$META, Microsoft
$MSFT, and Oracle
$ORCL saw their cover ratio fall to around 1.7x in July, the lowest level since at least September 2025.
The cover ratio measures investor demand by comparing total orders received versus the amount of bonds issued.
This metric has dropped 3.0 points over the past five months.
For comparison, the average cover ratio across investment-grade bonds is around 3.4x, nearly double Big Tech’s current level.
In February 2026, Big Tech’s average cover ratio was 4.7x, outperforming the broader market.
Meanwhile, the group has issued approximately
$194B in debt this year, representing a record ~9% of total US investment-grade bond supply.
The key question:
Are bond investors becoming more cautious about financing the AI buildout?