Bloomberg Intelligence Podcast – Episode Summary

Episode Title: Alphabet Looks to Raise About $15 Billion From US Bond Sale

Date: February 9, 2026
Hosts: Paul Sweeney (not present in transcript), Scarlet Fu
Featured Guests: Rob Schiffman (Bond Markets Analyst – TMT), Sam Fazelli (Pharma Analyst), Scott Levine (Energy Analyst), Drew Redding (Homebuilders Analyst)

Episode Overview

This episode presents a deep dive into significant financial and corporate news: Alphabet’s landmark $15 billion bond issuance, Eli Lilly’s strategic investments and IP drama in the obesity drug market, a major offshore energy merger, and industry reaction to potential antitrust moves against homebuilders. Bloomberg Intelligence sector experts provide analysis, market context, and discuss the strategic significance of these developments across tech, pharma, energy, and housing.

1. Alphabet's $15 Billion Bond Sale & Big Tech Bond Market Dynamics

Guest: Rob Schiffman
Main Segment: 00:24–05:03

Key Discussion Points

• Purpose of the Issuance:
  Alphabet is tapping the bond market—raising $15 billion—not strictly out of necessity, but leveraging favorable market conditions and to support potential AI-driven capital investment needs.

• Market Appetite & Creditworthiness:

  • Tech companies like Alphabet historically issue debt because market access is easy and cost-effective.
  • Growing AI demand has boosted both company cash flows and bond investor appetite.
  • S&P affirmed Alphabet’s AA rating; Alphabet has $180 billion in "additional debt capacity" before risking a downgrade—even more than what they’re currently borrowing.

• Long-Duration Bonds:

  • Discussion about the optics of “100-year bonds” vs the more typical 30- or 40-year terms: in market risk terms, “the duration of a 100-year bond is pretty much the same as a 40-year bond.”

    “It sounds sort of astronomical, but really the risk to the credit is pretty much the same.” – Rob Schiffman (01:37)

• Bondholder Sentiment & Yields:

  • Yields remain tight because bondholders see little risk.
  • “Bondholders are screaming, we are not worried.” – Rob Schiffman (03:06)
  • A lot of skepticism comes from equity markets, not debt markets.

• Concentration Risk & Market Absorption:

  • Concerns about oversaturation with tech company bonds are addressed. Historically, buyers step in when spreads widen.
  • "There’s a price for everything.” – Rob Schiffman (03:41)
  • Example: Oracle bond oversubscription after boosted yields.

• Multi-Currency Issuance:

  • Alphabet is also issuing in Swiss francs and pounds, with significant potential in euros and yen due to global demand for tech debt.

Notable Quotes & Timestamps

• “These tech companies…raise money because they can, not necessarily because they need it. But now they kind of need it a little bit. Has that changed the narrative?” – Scarlett Fu (00:28)
• “They don’t really need it. But there’s plenty of access at reasonably low cost obviously all along the curve…demand for these tech companies bonds are insatiable as well.” – Rob Schiffman (00:59)
• “That’s how much capacity they have at double A plus…What if they wanted to borrow a trillion dollars? Could they?” – Rob Schiffman (02:03)
• “Bondholders are screaming, we are not worried.” – Rob Schiffman (03:06)
• “We heard this historically…People come back and say we’re full, we can’t have another bond…What changes that? Spreads.” – Rob Schiffman (03:27)

2. Eli Lilly’s M&A Activity and Obesity Drug IP Battle

Guest: Sam Fazelli
Main Segment: 05:25–11:26

Key Discussion Points

• Lilly’s R&D-Driven Acquisitions:

  • Recent purchases: Orna Therapeutics ($2.4B, focused on circular RNA tech), and a $350M stake in China’s Innovent Biologics.
  • Rationale: Rapidly growing cash flow from obesity drugs is fueling M&A to reinforce the pipeline and mitigate future patent cliffs.
  • “The more assets that these guys have with their massive cash flow… the higher the probability that they’ll be coming to that point where people start going ‘your $35 billion drug is about to come off patent… What are you going to be replacing it with?’” – Sam Fazelli (06:27)

• Obesity Drug IP Litigation:

  • Novo Nordisk is suing Hims & Hers for marketing knockoff obesity therapies, reflecting intense market competition and high stakes.
  • Fazelli categorically opposes generic “knockoff” obesity drugs outside established patent/generic protocols.

    “There’s rules in the patent world. You invent something, you patent it. You’re supposed to have a while to make some profits of it before generic companies come… Here having someone to go and say, okay, I’ll go and buy and source the active agent from somewhere and put it in a syringe and sell it to people. That shouldn’t be allowed.” – Sam Fazelli (07:53)

• Market Implications & Historical Context:

  • The former partnership between Novo Nordisk and Hims was scrapped, leading to direct competition and IP fights.
  • The market for obesity therapy is massive; the market for other pharma applications like baldness drugs is much smaller by comparison but still significant for niches.

Notable Quotes & Timestamps

• “Who needs a drug for baldness? We are higher up on the evolutionary tree, my friend.” – Sam Fazelli (10:33)
• “Obesity…just a gold mine. Just think about how big this marketplace could be.” – Scarlett Fu (10:15)
• “There are drugs already, alopecia drugs out there…but these are more for serious cases, not for someone like me that nobody cares anymore. Everyone will be shocked if I turned up with a bit of hair.” – Sam Fazelli (10:43)

3. Transocean–Valaris $5.8 Billion Merger: Offshore Drilling Consolidation

Guest: Scott Levine
Main Segment: 11:48–17:01

Key Discussion Points

• Deal Overview:

  • Transocean to acquire Valaris in a $5.8B all-stock deal—combining the largest fleet (“backlog”) and jackup (shallow water) capacity.
  • The merger is both an offensive (expanding market coverage) and defensive (addressing legacy debt) move.

• Industry & Competitive Landscape:

  • Transocean avoided bankruptcy during the last industry downturn, but remains burdened by legacy debt.
  • The deal gives Transocean greater participation in a potentially reviving shallow water rig market (“jackup” rigs), as the cycle for offshore drilling moves toward recovery.

    “This deal will accelerate their deleveraging process…and better enable them to capitalize on an upturn in offshore drilling.” – Scott Levine (12:31)

• Market Positioning:

  • The combination helps Transocean diversify assets—previously focused exclusively on “floaters” (deepwater) now gaining “jackup” rigs.

• Drilling Market Cycle:

  • After a post-pandemic recovery in 2022-23, the industry hit a mid-cycle plateau.

    “In terms of what inning we’re in, I think we’re probably like third, fourth inning. But it’s been kind of an unconventional recovery.” – Scott Levine (15:10)

• Regulatory Outlook:

  • Despite the two firms’ scale, antitrust clearance is expected to be straightforward due to industry fragmentation.

Notable Quotes & Timestamps

• “Transocean has the largest backlog, Valaris has largest fleet.” – Scott Levine (12:10)
• “The biggest jackup driller is Saudi Aramco…made significant cuts to their drilling program, abandoned plans to increase oil production…” – Scott Levine (13:10)
• “I do think the recovery is intact, but I think the cadence has certainly slowed…” – Scott Levine (15:02)

4. Potential Antitrust Action Against US Homebuilders

Guest: Drew Redding
Main Segment: 17:21–22:40

Key Discussion Points

• Context of the Antitrust Probe:

  • Trump administration is mulling an antitrust investigation into alleged information sharing among top homebuilders (e.g., DR Horton, Lennar) via trade groups—potentially aimed at limiting supply or keeping prices high.
  • No formal investigation has launched; the news may be a tactic to gauge industry/public reaction.

• Interplay Between Builders & Policymakers:

  • Despite occasional tough rhetoric, there’s also cooperation on housing affordability, supply, and even programs for “Trump homes” (rent-to-own models).

    “The tone of this relationship…seems to change by the day…They have been working collaboratively to find a solution to housing affordability’s problem.” – Drew Redding (19:44)

• Mortgage Rates & Affordability:

  • Progress on mortgage rates, now ~100bp down from previous year, but the “bulk of the move” has already happened unless the 10-year Treasury falls further.
  • Overall affordability is improved relative to last year, but demand is still hesitant due to economic and labor market uncertainty.

• Luxury vs. Lower-End Segment:

  • Luxury market holding up better due to less sensitivity to rates; however, the entire housing ecosystem is interconnected and long-term volume growth requires improvement at the lower end to "funnel up" demand.

Notable Quotes & Timestamps

• “If the builders don’t put their lots into production and start building houses, the GSEs could pull liquidity.” – Drew Redding (18:17)
• “Affordability has improved a little bit from last year, but we still haven’t seen that significant demand response…” – Drew Redding (21:21)
• “Pricing has held up better at the higher end…I think we’re going to continue to hear that.” – Drew Redding (22:12)

5. Memorable Moments & Analyst Banter

• AI and the 100-Year Bond Paradox:
  “Based on what might happen with AI, we don’t know if any company is going to be around…in 30, 40 or 100 years.” – Rob Schiffman (01:39)

• Pharma Humor:
  "Who needs a drug for baldness? We are higher up on the evolutionary tree, my friend." – Sam Fazelli (10:33)

Key Timestamps

• 00:24–05:03: Alphabet bond issuance, big tech in the bond market (Rob Schiffman)
• 05:25–11:26: Eli Lilly’s M&A, obesity drug IP battles, pharma pipeline strategy (Sam Fazelli)
• 11:48–17:01: Transocean–Valaris energy merger, offshore drilling outlook (Scott Levine)
• 17:21–22:40: Antitrust threats, homebuilding policy, mortgage market (Drew Redding)

Tone & Style:
Informed, fast-paced, dry corporate wit interspersed with wry analyst banter. Analyst explanations are detailed, but jargon is generally clarified for the broad Wall Street and investor listener base.

Summary Prepared for Listeners Who Missed the Episode:
Whether you’re tracking multi-billion-dollar tech offerings, pharma’s latest gold rush, strategic realignment in offshore drilling, or policy tides in the housing market, this episode features Bloomberg Intelligence’s signature blend of market context, analyst insight, and memorable commentary—essential listening for investors and professionals following these major sectors.