Alphabet's 100-year-old debt fell for the first time by 90% of the bond spread of a super-large cloud service provider

On 24 July, Alphabet Inc. issued a 100-year bond on the British pound market earlier this year, at a time of massive global debt, which for the first time fell by 90 pence per pound sterling. The data show that only Pound1 billion (1340 million) was issued on Thursday, 2126, for bonds due. When the technology giant issued the bond in February this year, it was issued at slightly lower prices than the nominal value. The risk premium, relative to the no-risk base rate, once touched the height of 139.8 basis points. Of all the high-level corporate debt of benchmark sizes globally, the bond had the longest remaining term. It is being hit by both market concerns about artificial intelligence-related bond issuance and a general rise in government bond yields at a time of renewed fiscal deficits and inflation concerns. The price of this bond could fall by almost 15 pence, owing to its long duration and a 1 percentage point increase in the rate of return. At the same time, Michael Teig, a credit strategist at Yushu Bank, wrote in a report on Thursday: “The recent increase in credit spreads on super-large cloud-server bonds has rekindled the debate among investors on the feasibility of their business model, particularly in the context of the large-scale capital expenditures of these companies.”