Microsoft's $25 billion bond offering, its first major issuance in almost a decade, drew up to $115 billion of orders at its peak. Amanda Lynam of Goldman Sachs said this capital-raising cycle will require a range of markets, structures and currencies, and that investors are anticipating this activity. Five hyperscalers issued $108 billion of debt in 2021, while 229 billion had been tracked this year before this deal. Winnie Cisar of CreditSights said Microsoft benefits from not having come to market often this year, though investors are carefully limiting risk concentration; Lynam said the market is bifurcating between AI-related issuers and others, and sustained index-level spread widening is difficult to see given current growth, yields and solid corporate fundamentals.
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