IN FOCUS6-8 min read
Schroders Credit Lens August 2026: your go-to guide to global credit markets
How big tech’s borrowing spree is reshaping corporate bond markets.
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Links to all three versions of the Credit Lens are provided below and at the bottom of the page.
Summary:
- Credit spreads remain at exceptionally tight levels vs history, offering little margin of safety (slides 4-5)
- big tech’s borrowing spree puts upward pressure on index duration, as they issue longer dated bonds than other issuers. The EUR market is shorted-dated so the difference is even more pronounced here
- The hyperscaler story has not changed dramatically: revenues strong, capex spend high, borrowing soaring (slide 8-15)
- after rising sharply vs the market in recent months, hyperscaler spreads snapped back in early August
- Large amounts of issuance remains a theme but so far it is easily being met by demand (slides 6-7, 41-43)
- foreign demand for US corporate bonds has been rising,
- ultimately, demand remains because yields are attractive to many buyers, in isolation and vs cash
Chart of the month
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Témy