Amazon and Meta Bond Spreads Surge Overnight as AI Funding Demand Strains Market

According to IHS Markit data, Amazon and Meta's corporate bonds experienced sharp spread increases on July 7-8. Amazon's 2036-maturity bond spread jumped from 61 basis points to 73 basis points, while Meta's 2036-maturity bond spread surged from 87 basis points to 96 basis points—marking its highest level since issuance. The spike reflects investor concerns over mounting demand for AI infrastructure financing, intensified by Amazon's latest $25 billion bond offering just four months after its March issuance of $37 billion, which attracted over $60 billion in orders but showed weaker demand compared to the earlier sale.
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