Hyperscalers vs Governments: Who's the Dog, Who's the Tail? – Société Générale Macro Research

Key Takeaways

• 1.AI hyperscalers have become sovereign-scale debt issuers, with YTD net bond issuance topping $200bn and outpacing the annual net sovereign supply of several major developed economies.
• 2.Hyperscalers are competing directly with sovereigns for private institutional capital at a time when major central banks are shrinking balance sheets and foreign reserve managers have pulled back.
• 3.Hyperscalers are heavy suppliers of long-duration paper, contributing roughly one third of 10y+ USD IG corporate issuance and adding to structural steepening and term premium pressure at the long end.

Table of Contents

• Key points
• Changing competition for funding
• Record 2026 issuance by hyperscalers
• No indigestion in credit markets yet

Report data

Graph 9. Hyperscalers' YTD net issuance exceeded annual net supply by major developed economies

Reports in this series

Fixed Income Special is shown in chronological order through this edition, published on September 25, 2026.

1. Sep 15Fixed Income Special Debt sustainability on the radar