Yahoo Finance·2025-11-28 09:10Core Viewpoint - Concerns regarding the oversupply in the credit market due to massive debt issuance from tech giants are considered premature by industry experts [1][2]. Group 1: Debt Issuance and Market Reaction - Tech firms have recently entered the bond market to address significant AI-related investment needs, raising concerns about potential selloffs due to rapid debt growth [2]. - Iain Stealey from JP Morgan Asset Management noted that while there has been substantial issuance leading to a temporary widening of investment-grade spreads by about 10 basis points, the broader fears are exaggerated [2][3]. Group 2: Company Financial Health - Despite the high levels of issuance, major tech companies are generating substantial earnings annually, which mitigates concerns about their debt levels [3]. - The limited existing debt of these tech giants makes them attractive credit options, with companies like Alphabet having a better credit rating than France [4]. Group 3: Future Outlook - Future debt supply from these companies is expected to be more evenly spaced, with Meta indicating it will likely refrain from issuing more debt until the second half of next year [3]. - The overall sentiment at the conference was positive, with expectations that healthy balance sheets and attractive yields will support the credit market through 2026 [5].