Big Tech firms, previously touted for being capital-light, are now spending vast sums of money
towards AI infrastructure. In 2025, four hyperscalers—Alphabet, Amazon, Meta and Microsoft—
spent over $400 billion. The estimated 2026 capex for these four companies is $650 billion.
"Century bonds get issued when money is easy.
The first wave came in the mid to late 1990s, when companies had
a lower yield compared with safe Treasurys than any time since.
The cost of corporate debt compared with Treasurys jumped
after hedge fund Long-Term Capital Management imploded."
"The second wave came when money was actually free during the period of zero interest rates.
It didn’t end well, with Argentina defaulting after just three years and Austria’s bonds now worth
just 5% of what they were worth at issue, as zero rates proved temporary."
"The spread of corporate yields over Treasurys last month hit the lowest since just after Coke’s 1998 bond,
amid strong demand for the safety of high-quality issuers.
This is a great time for companies to borrow; it isn’t obviously a great time to lend to them."
https://www.msn.com/en-us/money/markets/alphabet-s-rare-100-year-bond-tells-us-that-money-is-easy/ar-AA1W9fsF
