• June volumes hit annual high despite lowest deal count
• Computers and electronics account for two-thirds of issuance
• Active summer expected despite seasonal slowdown

US convertible bond issuance remains on pace for another record year as companies continue to tap equity-linked markets to finance large-scale artificial intelligence-related investment programs and other growth initiatives.

Issuers have raised USD 85.5bn across 127 convertible deals year-to-date, according to Dealogic data as of early June. The total is already equivalent to nearly 90% of the USD 96.1bn raised during all of 2024 from 265 deals and represents roughly 61% of the record USD 140.5bn issued in full-year 2025.

Activity has accelerated in the second quarter of 2026. USD 49.5bn was raised across 52 transactions in Q2, already surpassing the USD 35.9bn raised across 75 deals in Q1. June has been particularly active, with issuers raising USD 21.4bn across seven transactions so far this month, making it the strongest month of the year by volume despite recording the lowest deal count.

“We’ve had record issuance of equity-linked paper so far this year, on top of the record issuance last year,” said Ivan Nikolov, head of convertible bonds at Fisch Asset Management. “It’s a very hot market, especially in the AI value chain. We’re seeing more and more hyperscalers coming to market.”

Several large transactions have helped drive issuance volumes higher. Alphabet priced two separate USD 9.625bn tranches earlier this month, while other sizeable offerings have included USD 5bn deals from Alibaba and Oracle. Other sizable offerings included USD 4bn from CoreWeave and USD 2.75bn from DoorDash.

Technology-related issuers continue to dominate activity. Computers and electronics companies have raised USD 56.8bn across 43 deals, accounting for 66.4% of total issuance volume in 2026, according to Dealogic. Utility and energy issuers follow with USD 7bn across nine deals, while healthcare companies have raised USD 6.6bn through 26 transactions.

“We’ve been seeing a lot of activity from large companies, mid-sized companies, smaller companies, investment-grade companies, more speculative issuers,” Nikolov said. “Given the magnitude of ongoing capex programs and financing needs, we’re going to continue to see more from them.”

Many issuers are turning to convertibles and other equity-linked structures to help fund expansion while preserving financial flexibility, he said.

“A lot of these issuers share the same situation: a massive expansion program ahead and substantial capital needs,” Nikolov said. “They’ve realized that equity-linked instruments are a very effective tool to finance this kind of growth.”

The concentration of issuance among technology companies reflects continued spending across the artificial intelligence ecosystem, from hyperscalers and cloud providers to semiconductor manufacturers and other infrastructure providers.

Investor demand has remained supportive as issuers continue to secure attractive financing terms, said Bryan Goldstein, head of convertible bonds origination at advisory firm Matthews South.

“I think deals are trading well and investors are happy to get exposure to AI through the convert market, so I’d expect that to continue,” Goldstein said.

Companies have been able to achieve historically attractive terms in some cases, including zero-coupon structures and high conversion premiums, while investors have generally benefited from strong aftermarket performance, he said.

Goldstein cautioned that investor enthusiasm could eventually moderate if issuance terms become overly issuer-friendly, but said current market conditions remain supportive.

“Right now everything is very strong and there’s a lot of optimism,” he said. “There needs to be the right balance: terms that are attractive for issuers but that also work for investors.”

Issuance is also likely to remain elevated through the summer, despite the seasonal slowdown that often accompanies corporate blackout periods.

“Typically we’d expect some slowdown in the summer,” Nikolov said. “But given the pace of these capex programs, I don’t think this will be a typical summer.”

The issuance currently coming to market is being driven by ongoing financing requirements rather than opportunistic fundraising, he said. “The issuance we’re seeing is not opportunistic; it’s financing real growth,” Nikolov said. “As long as that growth is ongoing, issuance will be too.”

Goldstein similarly expects activity to remain healthy despite normal calendar-related pauses.

“As we move toward the end of June, blackout periods start again, so there may be a slightly slower window,” he said. “But given the amount of capital that needs to be raised in the current environment, anyone still considering a convert will likely try to bring it.”

“There are extraordinary amounts of capital needed for the AI opportunity, and the convert market should be well positioned to handle that demand.”