Europe, 3 November 2026 – Borrowing to finance artificial-intelligence infrastructure is increasing the supply challenge facing European bond investors. BNP Paribas forecasts net euro-denominated investment-grade corporate bond supply of EUR192 billion in 2027, up from EUR105 billion this year, as large US technology companies look beyond their domestic market for funding.
For Asian investors holding European credit, additional high-quality issuers can widen investment choice while competing for the same pool of demand. The effect on borrowing costs remains uncertain. Larger issuance can require more attractive pricing, but a forecast of supply is not proof that credit spreads or government yields will rise by a particular amount.
Unlock the Full Article
This article is exclusive to The Ledger Asia Subsribers / PAID members.
Already have an account? Log in here
