Amazon's $25B Debt Issuance Triggers Sell-Off in AI Corporate Bonds on July 7

According to MarketWatch, Amazon's announcement of a $25 billion new debt issuance triggered widespread selling in AI-sector corporate bonds on Tuesday, July 7, with credit spreads widening sharply. Meta's 2056 May-maturity bond saw credit spreads widen 8 basis points, while Amazon's 2066 March bond widened 14 basis points. Janus Henderson's John Lloyd noted that six major AI players—Amazon, Microsoft, Alphabet, Meta, Oracle, and Nvidia—have collectively issued over $460 billion in outstanding corporate debt in recent years, including $100 billion in new issuances so far in 2026.

Analysts warned of mounting debt financing risks in AI infrastructure expansion. Lloyd stated: "Investors are increasingly questioning how much more debt this industry will need to issue over the next several years to fund massive AI infrastructure spending." SpaceX added to the trend by launching a $25 billion debt offering in June.