This strategist correctly recommended shorting Big Tech debt last year. Now he says the yields make it attractive.

This strategist correctly recommended shorting Big Tech debt last year. Now he says the yields make it attractive. Yields ranging from 6% to 8% on tech bonds provide more competition against stocks than before Big tech companies have gone on a borrowing spree to fund their AI ambitions.

Now the yields on their debt look attractive, a strategist says. Bonds from investment-grade technology companies have underperformed the broader asset class by 9% this year, the worst relative underperformance in three decades. But the generous yields of as high as 8% these bonds now offer render them attractive to Bank of America’s chief investment strategist.

Michael Hartnett made the call in his weekly “flow show” research note published Friday, and it reverses the prescient recommendation he made almost a year ago. Back then, Hartnett suggested shorting hyperscaler bonds in anticipation of ballooning supply in 2026 forcing wider spreads. Copyright ©2026 MarketWatch, Inc.

All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Jules Rimmer is a markets reporter in London. Rimmer spent more than 30 years as a trader and stockbroker, starting at Salomon Brothers in the “Liar's Poker” era, taking in ING Barings, Jefferies and ending it in emerging markets at Investec. He hung up his headset and pivoted to journalism in 2021.

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