Apollo Global Management President Jim Zelter forecasted that investment-grade debt sales will exceed the net issuance of US Treasuries in 2026. He made these comments public on June 4 this year, highlighting a shift in capital markets dynamics [1].
Zelter pointed to strong funding demand from the Magnificent Seven tech companies and others fueling expansion efforts. This surge in capital requirements notably ties to what he described as a "phenomenal and unprecedented" boom in artificial intelligence (AI) capital expenditures impacting public markets [2, 1].
The rapid rise in AI investment has major implications for market participants. Zelter warned that smaller companies might face difficulties raising funds in public markets amid the intense focus on AI-related capital spending and the dynamics of the debt market. "The phenomenal and unprecedented AI capex boom could cause issues for smaller companies looking to tap the public markets," he said [1].
Alongside the debt market trends, several mega initial public offerings (IPOs), including one from Alphabet Inc., are expected soon. These large IPOs highlight continued robust activity in equity markets tied to tech sector expansion [2].
Zelter’s remarks offer insight into how capital markets could evolve through 2026, driven by technology investment and credit issuance.
The next major public update on market issuance trends is expected after the close of 2026, when final data on debt and treasury sales will provide a complete view of the year’s standings.
