Asset management giant Pimco cuts its holdings of Meta debt ahead of schedule, shifting its risk appetite to cautious.

Asset management giant Pacific Investment Management Co. (Pimco), which heavily participated in AI data center debt financing in 2025, has successfully avoided some losses from the AI bond market correction and turned a profit by selling off a portion of its positions early, implementing interest rate hedges, and abandoning some subsequent transactions. Pimco previously took part in approximately $18 billion in debt financing for Meta’s Louisiana data center project and around $10 billion in financing for Oracle’s Michigan data center project, respectively. Documents show that the firm’s current holdings of these two related debt positions are each reduced by roughly 50% from their prior levels. About 6 to 8 months after purchasing the Meta-related bonds, Pimco sold around $3 billion worth of the bonds at a price above par. Meanwhile, Oracle-related bonds have fallen from 98.7 cents on the dollar at issuance to around 88 cents. As AI infrastructure financing continues to expand, Pimco has grown more cautious recently, having successively abandoned participation in large debt deals linked to Broadcom and Anthropic, SoftBank’s roughly $11 billion junk bond issuance, and some Oracle data center loans. However, the firm still joined a large financing round for SpaceX, subscribing for around $4 billion in debt to support its AI business expansion. (Bloomberg)