Morgan Stanley expects that the borrowing scale of hyperscale cloud service providers will reach $400 billion this year, higher than the $165 billion in 2025. The head of U.S. credit strategy at the bank pointed out that this concentrated bond issuance may push the total issuance of investment-grade bonds this year to a record high of $2.25 trillion. Some credit strategists believe that the massive supply could widen corporate bond spreads. "We think the current path is more like 1997/98 or 2005: credit performance is under pressure, but it has not yet entered the 'late cycle'."