PIMCO Sells Off About Half of Its Meta Bonds
According to Bloomberg, PIMCO last year, as a cornerstone investor, bought about $18 billion of debt backing Meta’s data center project in Louisiana and about $10 billion of debt backing Oracle’s data center campus in Michigan. These deals became a template for subsequent AI infrastructure debt financing.
Since then, PIMCO sold roughly half of each of those holdings when bond prices were high. In the Meta-related debt, known in the market as Beignet, PIMCO sold about $3 billion after holding it for 6 to 8 months, when prices were already above par and had initially risen to more than 110 cents on the dollar. Oracle-related bonds were issued at 98.7 cents on the dollar and are now trading at about 88 cents on the dollar.
As an anchor investor, PIMCO bought at a price significantly below the official issue price, thereby reducing potential losses. PIMCO also managed risk through interest-rate hedges and by avoiding some subsequent AI-related deals. The report said these reductions helped the company avoid some losses from market declines.
Original source:
Title: Pimco Offloads Billions in AI Debt Just in Time to Skirt Losses Publisher: Bloomberg Publication date: 2026-10-28 URL: https://www.bloomberg.com/news/articles/2026-10-28/pimco-offloads-billions-in-ai-debt-just-in-time-to-skirt-losses Source nature: Financial news report Verification status: This reading used the relevant repost and summary; verification date 2026-10-29 Supporting content: purchase amounts, sale of about half, Oracle bond price to 88 cents, Meta sale details
ABAB AI Insight
PIMCO’s reductions came after the scale of AI-related debt financing expanded and bond prices retreated from their highs. Meta project debt rose quickly, and PIMCO sold part of its holdings when prices were above par. After the Oracle bonds were issued, their prices fell, and PIMCO cushioned part of the impact by buying at a discount.
These projects issued bonds through special-purpose vehicles, allowing technology companies to finance data center construction off balance sheet. As an anchor investor, PIMCO had some influence over pricing and terms. The report also mentioned that PIMCO recently avoided some other large AI-related debt deals.
Officially, PIMCO’s specific remaining holdings size or the exact timetable for the reductions was not disclosed. Bond price data came from market quotation systems such as Trace.
ABAB News · Cognitive Law
PIMCO reduced roughly half of its Meta- and Oracle-related data center debt holdings, and sold some Meta bonds when prices were high.
Oracle-related bonds have fallen in trading from 98.7 cents at issuance to about 88 cents.