Pimco Takes Profits Early by Trimming Meta Debt; Still Gains After AI Bond Market Pullback

Odaily: Asset management giant Pacific Investment Management Company (Pimco) was heavily involved in AI data center debt financing in 2025. Now, by selling part of its holdings early, hedging interest rates, and forgoing some subsequent deals, it has successfully avoided part of the losses from the AI bond market pullback and achieved a profit.

Pimco had previously participated in roughly $18 billion of debt financing for Meta's Louisiana data center project and about $10 billion for Oracle's Michigan data center project. Filings show that the firm's current positions in the two related debt deals have each been reduced by about 50%. Pimco sold roughly $3 billion of the Meta-related bonds about 6 to 8 months after purchase, when prices were already above par; Oracle-related bonds fell from 98.7 cents at issuance to about 88 cents.

As AI infrastructure financing continues to expand, Pimco has also become more cautious recently, forgoing participation in a large Broadcom-Anthropic-related debt deal, SoftBank's roughly $11 billion junk bond issuance, and some Oracle data center loans. However, the firm still participated in a large SpaceX financing, subscribing to about $4 billion of debt to support its AI business expansion. (Bloomberg)