How AI companies are driving a record $13.6 billion convertible bond surge in the US

AI companies convertible bonds: The United States convertible bond market is off to a record-setting start in 2026, with AI-focused companies fueling much of the momentum.

AI-Focused Companies Drive Early 2026 Convertible Bond Surge

Through February 18, 18 firms have raised nearly $13.6 billion from equity-linked securities, a 556% increase compared with the same period in 2025, as per Bloomberg data. Last year, convertible bond issuance hit an all-time high of $120 billion.

Jan Debeuckelaer, head of US equity-linked capital markets at Goldman Sachs, said “It’s possible we have the same or more activity as last year and roughly 50% AI-linked might be right if you include energy and utilities,” as quoted by Bloomberg.

Why Growth Companies Favor Convertible Bonds for Financing

Convertible bonds remain attractive to growth companies because they offer low-cost financing with the potential to convert into equity.

How Market Volatility Benefits Convertible Bond Investors

Jason Wood, founder of J. Wood Capital Advisors, said, “Volatility is really helpful for convertible investors,” as quoted by Bloomberg. The report noted that companies can sell bonds at low or zero coupons if stock prices fluctuate sharply. For instance, Microchip Technology recently issued zero-coupon convertible bonds with a 40% conversion premium, surpassing expectations.

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Health Care and Recent IPOs Could Boost Convertible Bond Market

Despite some turbulence in software and neocloud stocks, market experts remain optimistic. Michael Voris of Goldman Sachs highlighted a broader capital investment cycle across the US, while Wood noted that sectors like health care and recent IPOs could see a surge in convertible bond issuance.

Wood said, “The last couple of years have been very light in terms of health care issuance mostly because health care companies haven’t liked their stock price or valuation,” adding, “But the bounce in the sector at the end of last year has been getting issuers more interested," as quoted by Bloomberg.

Oracle’s $5 Billion Bond Demonstrates AI-Focused Capital Strategy

Oracle’s $5 billion mandatory convertible bond earlier this month illustrates how companies are leveraging these instruments to support AI spending and credit strategies.

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FAQs

Why is the US convertible bond market booming in 2026?

AI-focused companies are driving record early-year issuance, helping the market start strong.

How much has been raised so far this year?

18 companies have raised nearly $13.6 billion through February 18, a 556% increase over 2025.