Alphabet Has Perfected the A-to-Z of Bond-Market Dominance

Alphabet Inc. has this week embarked on the next leg of its debt program to meet the voracious funding needs of its artificial intelligence program. Nothing quite signifies global domination like issuing bonds with ease across all of the world’s major bond markets and at a range of maturities, including the ultra-long arena that’s typically reserved for the most favored of borrowers.

Monday saw Google’s parent successfully raise $20 billion in a multi-tranche issue, following the November sale of US debt worth $17.5 billion and an additional €6.5 billion ($7.8 billion) denominated in euros. Several issues in Swiss francs and British pounds followed on Tuesday, raising the equivalent of a further $11 billion. Alphabet now has bonds outstanding that offer a liquid yield curve across major currencies, enhancing the attractiveness of its debt to investors, which in turn will likely reduce its funding costs, make it a benchmark versus other corporates and even offer a useful diversification from government debt.