US convertible issuance has already set a new annual record, reaching $131 billion so far this year, according to Bloomberg's count. Another $25 billion came in August alone, which tipped the running total above the previous peak from two years back. The 2026 numbers are year to date through Sept. 10, reflecting a wave of large, equity-linked financings.
The stampede spans upstarts and blue chips. Amsterdam-based AI cloud player Nebius Group NV unveiled two deals last month that together raised $5.75 billion. On the investment-grade side, Alphabet included the year's biggest convertibles within its $85 billion capital-raising effort, featuring a $20.5 billion mandatory convertible preferred split into two tranches in June.
Oracle followed with a $5 billion mandatory convertible preferred in February. Bloomberg's rankings place specialist AI infrastructure names such as Nebius, CoreWeave Inc. and Iren Ltd. alongside Alphabet and Oracle among the top issuers by equity-linked proceeds.
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AI is the fuel. "We are cresting well above what we have seen historically because the financing need is so much greater due to AI and AI-related build-out, combined with a re-emergence of more investment grade issuers," said Craig McCracken, head of structured equity solutions within Wells Fargo & Co.'s equity capital markets group. Spencer Rogers, a strategist at Goldman Sachs Group Inc., estimates that about 44% of this year's sales are from AI-related companies.
Companies are finding friendly terms. Many recent converts feature relatively low coupons and higher conversion premiums, which can reduce dilution compared with issuing stock and often cost less than traditional bonds. Even with 10-year Treasuries nearing 5%, several issuers have sold zero-coupon convertibles, and Rogers notes that nearly 30% of new deals this year carry no coupon.
For arbitrage-focused funds, the choppier share prices of growth companies add to the appeal. As McCracken put it, "Pricing is more competitive relative to straight debt alternatives since there's more volatility in this environment, and investors are paying more for volatility than they have historically." Mandatory convertible securities are also doing heavy lifting this year; unlike standard converts, they do not let holders reclaim principal in cash at maturity. The conversion premium is the percentage a stock must climb from a set reference price for the embedded option to sit in the money.
The math explains the momentum. Jason Wood, the chief executive and founder of J. Wood Capital Advisors, said, "If you can do straight debt with a coupon of 7.5% but a convert for 1.5%, that an enormous difference." On a typical $800 million deal, he added, "it's nearly $50 million a year of cash-flow savings." With spend on chips, data centers, power and real estate still ramping to feed AI needs, bankers see more issuance ahead as long as the biggest tech names keep convertibles in the toolkit. McCracken underscored the supply dynamic: "Investment-grade companies may be smaller in number than sub-investment-grade issuers, but their average issuance size is far greater." For everyday investors, that likely means more large, equity-linked offerings in the market, pairing lower upfront interest costs for issuers with the potential for future dilution if shares climb enough to trigger conversion.
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