US firms set record euro bond sales as AI debt floods home market

This signals a structural shift in funding flows: as US credit supply concentrates around AI capex, the euro market becomes a release valve for non-AI corporate borrowers seeking pricing and depth. The arbitrage is not just cost—it reflects a bifurcation where dollar liquidity is increasingly earmarked for one theme. For European investors, this influx of top-rated US paper reshapes supply-demand dynamics and could pressure local spreads. The open question is whether this diversification persists if AI issuance slows or if euro pricing tightens to erase the advantage.