Report published September 9, 2026

Goldman Sachs: AI Funding Needs and Strong Demand Fuel Record Convertible Supply

Goldman Sachs · September 9, 2026

Year-to-date USD convertible bond issuance has reached a record $135 billion, driven heavily by AI-related infrastructure financing needs from both speculative-grade names and mega-cap hyperscalers like Alphabet and Oracle. Swelling demand fueled by elevated implied volatility and tight corporate credit spreads has created favorable borrower terms while providing investors with attractive upside convexity.

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Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.YTD USD convertible bond issuance has reached a record $135 billion, with AI-related issuers accounting for an estimated 44% of total supply.
2.Hyperscalers like Alphabet ($19 billion) and Oracle ($5 billion) are tapping convertibles to diversify funding and optimize rating-agency leverage metrics alongside massive AI capex pipelines.
3.Strong demand is driven by multi-decade high implied volatility boosting conversion option value, Russell 2000 outperformance, and historically tight straight bond spreads.

AI Funding Needs and Strong Demand Fuel Record Convertible Supply
Structural Demand Drivers & Convexity Technicals
Strong demand leads to better borrowing terms and more supply
Best Trade Ideas Across Assets

Report data

Exhibit 1: 2026 convertible supply has already surpassed any previous full-year total

Metric	Estimate	Context
YTD USD Convertible Bond Issuance Volume	135 billion USD	Already surpassed any previous full-year total with four months left in the year.
AI-related share of USD convertible bond supply	44%	AI-related borrowers account for nearly half of total convertible issuance.
Share of new convertible supply issued with zero coupon	nearly 30%	Elevated level reflecting strong demand and borrower-friendly terms.
Average conversion premium in secondary market	30%	Shrunk from nearly 70% a couple of years ago, increasing delta sensitivity.
Convertible index return since April 2025	47%	Outperformed straight high yield credit even on a beta-adjusted basis.

Source: Dealogic, Goldman Sachs Global Investment Research; Bloomberg, Goldman Sachs Global Investment Research; Goldman Sachs Global Investment Research. This is a dated model snapshot, not a live forecast.