Wall Street is finding out just how deep its pockets really are.

Goldman Sachs estimates hyperscalers such as Microsoft, Amazon, Alphabet and Meta will spend about $5.3 trillion on AI infrastructure through 2030. Barclays analysts expect those companies to issue more than $200 billion in debt this year alone, with borrowing expected to climb further in 2027.

No one disputes the spending. The debate is what happens next.

Apollo Chief Economist Torsten Slok argued this week that borrowing on that scale is already crowding out demand for U.S. Treasurys and other fixed-income investments.

Todd Czachor, global head of fixed income research at Columbia Threadneedle, said he isn't seeing evidence of that in the corporate bond market. “At least not yet.”

“Appetite for corporate bonds in this yield environment has been strong with non-AI related issuance being well received,” he says.

The data backs him up. The ICE BofA U.S. Corporate Index Option-Adjusted Spread, which measures how much more investors........

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