JPMorgan Sees AI Boom Driving Record $1.8 Trillion Bond Sales in 2026

Core Insights - A new wave of spending on artificial intelligence is projected to drive US investment-grade bond issuance to a record $1.81 trillion in 2026, surpassing the previous record of $1.76 trillion set in 2020 [1][2] Group 1: Drivers of Bond Issuance - Key drivers for the increase in bond issuance include refinancing over $1 trillion of maturing debt, a rise in mergers and acquisitions, and significant capital spending in AI [2][3] - The technology, media, and telecommunications sectors are expected to borrow approximately $400 billion in the high-grade market next year, with technology firms alone projected to issue $252 billion, a 61% increase from 2025 [4] - The consumer sector is anticipated to see a 44% increase in borrowing to $135 billion, while the media and entertainment sector is expected to rise by 38% to $85 billion, and telecom borrowing is projected to increase by 25% to $56 billion [4] Group 2: Mergers and Acquisitions Outlook - M&A-related supply is expected to rise to $182 billion in 2026, a 21% increase from $151 billion in 2025, indicating a healthy M&A pipeline with $94 billion of deals already announced [5][6] - The easing of concerns over tariff volatility and tax uncertainties has improved expectations for M&A activity, with analysts forecasting an additional $88 billion in future deals driven by sector trends [6] - The resurgence of M&A activity is characterized by many recent deals funded in the high-grade market, with some issuers moving deals from 2026 into 2025 [7]