Feb. 9 at 5:03 PM
PickAlpha Midday:
Alphabet is reportedly preparing about a
$15B U.S. investment-grade bond deal in up to seven tranches, with the longest 2066 piece initially talked around +120 bps over Treasuries. This comes days after management guided 2026 capex to
$175B–
$185B, reinforcing that AI infrastructure spending is accelerating and increasingly debt-funded.
Tickers:
$GOOGL $AMZN $MSFT
Our view is this is a funding-regime signal, not just a one-off deal: hyperscalers are normalizing jumbo issuance to finance AI scale. If books are heavily oversubscribed and final spreads tighten, equity can absorb the capex; if concessions widen and mega-cap tech de-rates, this becomes a duration/ROIC pressure trade.
