Marketplace All-in-One Corporations expected to take on record debt in 2026
Jan 6, 2026
Justin Howe, a Marketplace reporter, delves into the anticipated surge in corporate debt issuance for 2026. He explains how companies are looking to refinance old debt while investing heavily in AI and preparing for mergers and acquisitions, all of which demand extra cash. The discussion also touches on the recovery efforts of a small business owner in Altadena post-fire, the impact of rising brisket prices on Texas pitmasters, and how Costco is turning into a go-to destination for wine buyers.
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Record Corporate Borrowing Ahead
- Corporations are expected to hit record debt issuance in 2026 driven by refinancing, M&A, and AI-related CapEx.
- Investors are willing to buy now because balance sheets look strong and rate cuts are anticipated.
Refinancing Wave Drives Supply
- Much pandemic-era cheap debt is maturing this year, forcing companies to refinance.
- That wave of expirations is the primary driver of increased bond supply.
Debt-Funded M&A On The Rise
- Firms plan to use debt to finance mergers and acquisitions, boosting issuance.
- Debt-financed M&A volumes are expected to rise around 25% year-over-year.