The AI Debt Boom – How Hyperscalers are Reshaping Global Credit Markets

When nearly every institutional portfolio owns the same widely held new issues, where does outperformance actually come from? In this episode, recorded on July 27, 2026, Gabriel Lopezpineda, Head of Institutional at FGP, speaks with Cam Greenwood, Portfolio Manager, Fixed Income, about how the artificial intelligence buildout is being financed — not in the equity market, but quietly, in global bond markets. Cam explains why the hyperscalers, despite enormous cash flows and strong balance sheets, are turning to bond markets to fund data centres, power, networking and chips, with capital spending estimated between $800 billion and $1 trillion in 2027 alone. He also walks through Canada's growing role in that story through the Maple bond market — Canadian-dollar bonds issued by foreign borrowers — and how a 2025 index eligibility change brought a much larger pool of benchmark-aware buyers to the market, paving the way for record-setting Canadian-dollar issues from Alphabet and Amazon. That scale is what makes the opening question a real one. Cam discusses why exceptional credit quality and attractive relative value are not the same thing, why even the best companies can become expensive investments when enthusiasm compresses spreads, and why FGP chose not to participate in either deal. Listen in to learn why some of the most sought-after bond issues of the past year may not have been the most compelling investments — and why "Is this a great company?" and "Is this the best relative value available today?" are two very different questions. Disclosure:   This podcast is intended for informational purposes only and does not constitute legal, tax, security or investment advice, an opinion regarding the suitability of any investment nor a solicitation of any type. The opinions expressed are as at the date the podcast was recorded and are subject to change without notice. Foyston, Gordon & Payne is registered as a Portfolio Manager in every jurisdiction in Canada, an Exempt Market Dealer in every province in Canada, an Investment Fund Manager in Ontario, Quebec and Newfoundland & Labrador, and as an Investment Advisor in the United States. Foyston, Gordon, and Payne manages a number of pooled funds referred to as FGP Pooled Funds that are offered through a prospectus exemption to residents of Canada. The values of the FGP Pooled Funds change frequently. All investment involves risk. Unless otherwise stated, performance is on an annualized basis, in Canadian dollars and is gross of management fees. Past performance is not indicative of future performance. This podcast may contain forward-looking statements based on our views, information and assumptions as of the date of the recording. Listeners are cautioned that actual events may differ significantly. For further information on Foyston, Gordon, & Payne, please visit our website at [www.foyston.com](www.foyston.com).