Odaily Planet Daily report: Asset management giant PIMCO previously participated heavily in debt financing for AI data centers in 2025. By selling part of its positions early, implementing interest rate hedges, and abandoning subsequent transactions, PIMCO has successfully mitigated some losses and generated profits amid the recent correction in the AI bond market.
Pimco previously participated in approximately $18 billion in debt financing for Meta’s Louisiana data center project and approximately $10 billion in financing for Oracle’s Michigan data center project. Documents show that the institution’s current positions in both debt instruments have each decreased by approximately 50% since then. Pimco sold about $3 billion in Meta-related bonds approximately six to eight months after purchasing them, at a price above par; Oracle-related bond prices fell from 98.7 cents at issuance to approximately 88 cents.
As AI infrastructure financing continues to expand, Pimco has recently become more cautious, withdrawing from large debt transactions related to Broadcom and Anthropic, SoftBank’s approximately $11 billion junk bond issuance, and certain Oracle data center loans. However, the firm still participated in a major financing round for SpaceX, purchasing approximately $4 billion in debt to support the expansion of its AI operations. (Bloomberg)