[{"data":1,"prerenderedAt":159},["ShallowReactive",2],{"gql:data:gDG4Z-75079FKrIAF7dczDtUUIEVvYusHrMTcIcW0mM":3},{"mediaItem":4},{"relatedItems":5,"date":92,"derivedSeoDescription":13,"derivedSeoTitle":93,"derivedSocialMediaDescription":13,"derivedSocialMediaImage":94,"derivedSocialMediaTitle":93,"flexComponents":106,"author":9,"title":131,"byline":132,"shortDescription":9,"tileImage":133,"mediaFormat":142,"mediaFocuses":144,"teamMember":146},[6,40,66],{"title":7,"byline":8,"shortDescription":9,"slug":10,"featuredImage":11,"tileImage":22,"mediaFormat":33,"mediaFocuses":35,"date":39},"Rates Rise, But Equities Climb Higher","By Krystal Daibes Higgins","","rates-rise-but-equities-climb-higher",{"id":12,"alt":9,"caption":13,"assetUrl":14,"assetUrlXs":15,"assetUrlSm":16,"assetUrlMd":17,"assetUrlLg":18,"assetUrlXl":19,"assetUrlXxl":20,"width":21,"height":21},"2082",null,"https://www.fergusonwellman.com/system/uploads/fae/image/asset/2082/Higgins_Krystal.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2082/xs_Higgins_Krystal.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2082/sm_Higgins_Krystal.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2082/md_Higgins_Krystal.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2082/lg_Higgins_Krystal.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2082/xl_Higgins_Krystal.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2082/xxl_Higgins_Krystal.jpg",1500,{"id":23,"alt":9,"caption":13,"assetUrl":24,"assetUrlXs":25,"assetUrlSm":26,"assetUrlMd":27,"assetUrlLg":28,"assetUrlXl":29,"assetUrlXxl":30,"width":31,"height":32},"2081","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2081/_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2081/xs__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2081/sm__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2081/md__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2081/lg__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2081/xl__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2081/xxl__BlogInvestment.jpg",700,330,{"name":34},"Articles",[36],{"name":37,"slug":38},"Weekly Market Makers","weekly-market-makers","2026-09-25",{"title":41,"byline":42,"shortDescription":9,"slug":43,"featuredImage":44,"tileImage":53,"mediaFormat":62,"mediaFocuses":63,"date":65},"The Fed Hiked. Did the Bond Market Already Do the Work?","By Peter Jones","the-fed-hiked-did-the-bond-market-already-do-the-work",{"id":45,"alt":9,"caption":13,"assetUrl":46,"assetUrlXs":47,"assetUrlSm":48,"assetUrlMd":49,"assetUrlLg":50,"assetUrlXl":51,"assetUrlXxl":52,"width":21,"height":21},"2065","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2065/Jones_Peter.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2065/xs_Jones_Peter.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2065/sm_Jones_Peter.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2065/md_Jones_Peter.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2065/lg_Jones_Peter.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2065/xl_Jones_Peter.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2065/xxl_Jones_Peter.jpg",{"id":54,"alt":9,"caption":13,"assetUrl":55,"assetUrlXs":56,"assetUrlSm":57,"assetUrlMd":58,"assetUrlLg":59,"assetUrlXl":60,"assetUrlXxl":61,"width":31,"height":32},"2064","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2064/BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2064/xs_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2064/sm_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2064/md_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2064/lg_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2064/xl_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2064/xxl_BlogInvestment.jpg",{"name":34},[64],{"name":37,"slug":38},"2026-09-18",{"title":67,"byline":68,"shortDescription":9,"slug":69,"featuredImage":70,"tileImage":79,"mediaFormat":88,"mediaFocuses":89,"date":91},"Never Forget","By Blaine Dickason","never-forget",{"id":71,"alt":9,"caption":13,"assetUrl":72,"assetUrlXs":73,"assetUrlSm":74,"assetUrlMd":75,"assetUrlLg":76,"assetUrlXl":77,"assetUrlXxl":78,"width":21,"height":21},"2046","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2046/Dickason_Blaine.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2046/xs_Dickason_Blaine.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2046/sm_Dickason_Blaine.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2046/md_Dickason_Blaine.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2046/lg_Dickason_Blaine.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2046/xl_Dickason_Blaine.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2046/xxl_Dickason_Blaine.jpg",{"id":80,"alt":9,"caption":13,"assetUrl":81,"assetUrlXs":82,"assetUrlSm":83,"assetUrlMd":84,"assetUrlLg":85,"assetUrlXl":86,"assetUrlXxl":87,"width":31,"height":32},"2045","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2045/BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2045/xs_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2045/sm_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2045/md_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2045/lg_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2045/xl_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2045/xxl_BlogInvestment.jpg",{"name":34},[90],{"name":37,"slug":38},"2026-09-11","2026-10-02","Resources | Rising Yields, a Strong Economy and the AI Debt Deluge | Ferguson Wellman",{"id":95,"alt":96,"caption":13,"assetUrl":97,"assetUrlXs":98,"assetUrlSm":99,"assetUrlMd":100,"assetUrlLg":101,"assetUrlXl":102,"assetUrlXxl":103,"width":104,"height":105},"6","Ferguson Wellman Logo","https://www.fergusonwellman.com/system/uploads/fae/image/asset/6/FW-OpenGraph_2x.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/6/xs_FW-OpenGraph_2x.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/6/sm_FW-OpenGraph_2x.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/6/md_FW-OpenGraph_2x.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/6/lg_FW-OpenGraph_2x.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/6/xl_FW-OpenGraph_2x.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/6/xxl_FW-OpenGraph_2x.jpg",1200,630,[107,111,125,128],{"instance":108},{"__typename":109,"body":110},"MediaPageTextComponent","The bond market has had plenty to contend with this year: rising oil prices have renewed inflation concerns, global interest rates have moved higher, and investors are assessing how Federal Reserve Chair Kevin Warsh will respond. Meanwhile, solid economic growth, a low hiring and low firing employment backdrop and strong consumer spending reinforce the Fed’s hawkish stance and increase the likelihood of further rate hikes. The surge in borrowing to finance artificial intelligence has added to the pressure of long-term interest rates. Technology companies are competing for investor dollars alongside the Treasury and other corporate borrowers, adding another challenge to a bond market that is already facing heavy supply. The result is a historic increase in investment-grade corporate bond issuance. Barclays expects U.S. investment-grade issuance to reach a record $1.9 trillion in 2026, while Morgan Stanley projects issuance could exceed $2.2 trillion.  \r\n\r\nAmazon, Alphabet, Oracle and Meta account for a significant share of that borrowing. These companies are financing data centers, chip purchases, power generation and other infrastructure required to compete in AI. \r\n\r\nTo date, the market has absorbed the supply reasonably well, but the borrowing is expanding beyond the strongest technology companies. SoftBank recently completed an $11.1 billion high yield bond offering connected to its OpenAI investment. Additionally, nine high-yield issuers have tapped the market with AI-related debt in 2026, totaling $27 billion. The high-yield bond market, also known as junk bonds, are debt obligations of businesses with lower credit quality and correspondingly higher risk of default.  \r\n\r\nDespite the risk, the most important issue is timing. Companies are spending enormous amounts today, while the corresponding revenue may take years to develop. Free cash flow is declining for some highly rated technology borrowers, even as capital spending continues to rise. If revenue growth disappoints, leverage could increase quickly. \r\n\r\nOracle offers a useful example. The company now carries approximately $130 billion dollars of debt and will likely need substantial growth in earnings to protect its credit rating. For weaker borrowers, the margin for error is considerably smaller. That being said, Oracle is a recurring revenue software business, and the switching costs for its customers are considerable.   \r\n\r\nThe wave of issuance also creates a broader challenge for the bond market. Investors have a finite amount of capital. Heavy technology issuance must compete with Treasury borrowing and debt offerings from companies in every other industry. As supply grows, issuers may need to offer higher yields to attract buyers. All of the technology bond issuance this year may have in part “crowded out” some of the demand for treasury bond purchases. This has put further pressure on long-term treasury bond prices this year.  \r\n\r\nUltimately, the AI debt deluge is not a crisis, and we don’t anticipate one happening in the near term. Strong companies with durable cash flow should remain capable of financing their investments. Companies dependent on optimistic growth assumptions, repeated refinancing or private credit, however, may face greater pressure. \r\n\r\nWe continue to favor debt obligations of technology companies where strong cash flows and strong balance sheets support their debt financing, rather than businesses that are relying on the bond market to continue to say yes to constantly expand borrowing.",{"instance":112},{"__typename":113,"image":114,"videoId":9,"caption":9},"MediaPageImageOrVideoWithCaptionComponent",{"id":115,"alt":9,"caption":13,"assetUrl":116,"assetUrlXs":117,"assetUrlSm":118,"assetUrlMd":119,"assetUrlLg":120,"assetUrlXl":121,"assetUrlXxl":122,"width":123,"height":124},"2121","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2121/CPI.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2121/xs_CPI.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2121/sm_CPI.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2121/md_CPI.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2121/lg_CPI.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2121/xl_CPI.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2121/xxl_CPI.jpg",960,720,{"instance":126},{"__typename":109,"body":127},"It is our view that inflation has plateaued and is currently at 3.5%, which is near the long-term average. For interest rates to move meaningfully higher from here inflation would need to accelerate. Shelter inflation is largest component of the inflation that makes up more than third of the calculation is not accelerating. In addition, wage growth has tempered which contributes to overall inflation. Any moderation in the price of oil should result in interest rates moving lower.\r\n\r\nSeptember's jobs report reflects a \"low hiring, low firing\" environment as payrolls grew by just 29,000, while the unemployment rate edged up to 4.2%, both signaling a labor market that is cooling but not collapsing. ",{"instance":129},{"__typename":109,"body":130},"**Takeaways for the Week:** \r\n\r\n* Aggressive AI debt issuance is primarily being done by companies with strong balance sheets and reoccurring revenue models. We do not believe a debt crisis will result from this issuance.  \r\n\r\n* The sell-off in the bond market is for four primary reasons, inflation fears due to the move in oil prices, policy uncertainty, AI debt issuance and global rates moving higher. We believe that inflation is not accelerating and any moderation in oil prices will result in interest rates moving lower.  \r\n\r\n**Disclosure**\r\n\r\n*The views expressed represent the opinion of Ferguson Wellman. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Statements of future expectations, estimates, projections and other forward-looking statements are based on available information and Ferguson Wellman’s views as of the time of these statements. Past performance may not be indicative of future results. Ferguson Wellman, Octavia Group and West Bearing do not provide tax, legal, insurance or medical advice. This material has been prepared for general educational purposes only and not as a substitute for qualified counsel who can determine how this information applies to you. We believe the information provided is from reliable sources but should not be assumed accurate or complete.*\r\n\r\n*Please see additional [disclosures](/disclosures/).*","Rising Yields, a Strong Economy and the AI Debt Deluge","By Brad Houle",{"id":134,"alt":9,"caption":13,"assetUrl":135,"assetUrlXs":136,"assetUrlSm":137,"assetUrlMd":138,"assetUrlLg":139,"assetUrlXl":140,"assetUrlXxl":141,"width":31,"height":32},"2119","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2119/_BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2119/xs__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2119/sm__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2119/md__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2119/lg__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2119/xl__BlogInvestment.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/2119/xxl__BlogInvestment.jpg",{"name":34,"slug":143},"articles",[145],{"name":37,"slug":38},{"fullName":147,"title":148,"slug":149,"image":150},"Brad Houle","Head of Fixed Income","brad-houle",{"id":151,"alt":9,"caption":13,"assetUrl":152,"assetUrlXs":153,"assetUrlSm":154,"assetUrlMd":155,"assetUrlLg":156,"assetUrlXl":157,"assetUrlXxl":158,"width":21,"height":21},"236","https://www.fergusonwellman.com/system/uploads/fae/image/asset/236/Houle_Brad.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/236/xs_Houle_Brad.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/236/sm_Houle_Brad.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/236/md_Houle_Brad.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/236/lg_Houle_Brad.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/236/xl_Houle_Brad.jpg","https://www.fergusonwellman.com/system/uploads/fae/image/asset/236/xxl_Houle_Brad.jpg",1790964309097]