As the development of artificial intelligence has inspired the pursuit of cheap financing, global companies are issuing convertible bonds at the highest rate in 24 years. According to data compiled by Bank of America's Global Research Division, Alibaba, Lumentum Holdings, and ultra-microcomputer companies are all using convertible bonds to raise funds for AI-related investments, which will drive the amount raised to about US$166.5 billion in 2025. According to the data, this is the highest level since 2001, and is only slightly below the all-time high. Convertible bonds can be converted into company shares under specific conditions, which provides enterprises with lower interest costs. The cost is that if the right to convert is exercised, shareholders' rights will be diluted. This has traditionally made them extremely attractive to companies with strong growth potential. According to Fisch's Nikolov, AI-related companies spanning the semiconductor, infrastructure, software, and power industries together contributed about 40% of the return on the benchmark convertible bond index last year. Damon Carter, head of convertible bonds at Daiwa Capital Markets Europe, said: As the stock market operates healthily and interest rates stabilize, 2026 will provide more opportunities, especially in Asia, where convertible bond products are increasingly becoming mainstream financing tools.

As the development of artificial intelligence has inspired the pursuit of cheap financing, global companies are issuing convertible bonds at the highest rate in 24 years. According to data compiled by Bank of America's Global Research Division, Alibaba, Lumentum Holdings, and ultra-microcomputer companies are all using convertible bonds to raise funds for AI-related investments, which will drive the amount raised to about US$166.5 billion in 2025. According to the data, this is the highest level since 2001, and is only slightly below the all-time high. Convertible bonds can be converted into company shares under specific conditions, which provides enterprises with lower interest costs. The cost is that if the right to convert is exercised, shareholders' rights will be diluted. This has traditionally made them extremely attractive to companies with strong growth potential. According to Fisch's Nikolov, AI-related companies spanning the semiconductor, infrastructure, software, and power industries together contributed about 40% of the return on the benchmark convertible bond index last year. Damon Carter, head of convertible bonds at Daiwa Capital Markets Europe, said: As the stock market operates healthily and interest rates stabilize, 2026 will provide more opportunities, especially in Asia, where convertible bond products are increasingly becoming mainstream financing tools.