Banks get creative and look further afield as AI-fueled debt soars

By Tatiana Bautzer and Gertrude Chavez-Dreyfuss

NEW YORK, June 29 (Reuters) - As corporate borrowing tied to artificial intelligence shows no sign of slowing, bankers are coming up with new ways to sell ever larger volumes of debt.

The surge in spending on chips, cloud infrastructure and data centers has led large technology companies, known as hyperscalers, ‌to increasingly issue bonds in currencies other than the U.S. dollar to tap a wider pool of investors and prevent saturation in the U.S. with colossal volumes of ‌debt. Companies such as Amazon.com and Alphabet have issued $60 billion in bonds in multiple currencies in the last 12 months.

Can bond markets absorb the surge in AI debt?

How are data center lease-backed deals structured?

What is driving the massive capital expenditure needs?

How are tech giants diversifying their debt issuance strategies?

"Alphabet and Amazon have diversified into other global markets in Europe, Canada, Asia," said Teddy Hodgson, global co-head of investment-grade debt ​at Morgan Stanley. The large transactions have reshaped global bond markets and established new records for bond sales in euros, sterling and yen.

Amazon raised €14.5 billi

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/banks-creative-look-further-afield-090554702.html)