European Credit Weekly: Hyperscaler deep dive

Research evidence excerpt

European Credit Weekly: Hyperscaler deep dive

J P M O R G A N Europe Credit Research

31 July 2026

European Credit Weekly

Hyperscaler deep dive

• Euro-denominated hyperscaler debt has widened by 18bp since 6-Jul, Europe Corporate Credit - Strategy

AC compared with just 3bp for the broader Senior Non-Financial Matthew Bailey

benchmark. (44-20) 7134-2384

• We trim our FY26 euro-denominated US hyperscaler issuance target back matthew.a.bailey@jpmorgan.comAC

to €50bn, down by €20bn, although this still implies a heavy €27bn of Samuel Hayani

(44 20) 3493-4001

supply in the September - November primary window. samuel.hayani@jpmorgan.com

AC• To date this year, 11.4% of high-grade syndicated hyperscaler debt has Daniel Lamy

been issued in euros and 3.1% in sterling. (44-20) 7134-0467

daniel.lamy@jpmorgan.com

• Hyperscalers make up 1.2% of the EUR IG benchmark, with our latest J.P. Morgan Securities plc

estimates implying this could reach 7.9% by 2030.

Given how topical hyperscalers have been for global credit markets this month, in

this edition of the weekly we take a deep dive into their euro paper including

spreads, issuance, and benchmark concentration.

Looking at spreads, hyperscalers have significantly underperformed in recent

weeks. Since the local tights at the start of the month, they have widened by 18bp

to reach 104bp, decompressing against the iBoxx EUR Senior Non-Financials

index by 15bp (Figure 1EURIGHyperscalerBenchmarkSpreads,bp). The initial catalyst, in our view, was the $25bn Amazon

deal on 9th July, which was just 1.6x oversubscribed, triggering fears of supply

indigestion given the enormous funding requirements for data center construction

over the coming years. In our view, there is undeniably better value at these levels,