pimco

According to Bloomberg, as artificial intelligence debt financing accumulates to about $500 billion, the bond giant Pacific Investment Management Company (PIMCO) has reduced some of its largest holdings that helped initiate the financing boom. According to insiders, sometimes PIMCO starts to reduce its positions just a few months after buying.In addition to the approximately $18 billion in Meta-related bonds due in 2025 (at that time, the company became a cornerstone investor in a debt financing deal of about $18 billion, allowing Meta to build a large data center project in Louisiana without burdening its balance sheet), PIMCO's funds have also invested in $10 billion of Oracle-related transactions. Documents show that the company has currently reduced its holdings in both investments by about 50%. PIMCO reduced its positions when the prices of the related bonds were relatively high.

Pacific Investment Management Company (PIMCO) stated that the yield on the 10-year U.S. Treasury bond faces the risk of reaching 6% for the first time since 2000.

According to Jinshi reports, Pacific Investment Management Company economist Tiffany Wilding stated that the inflation report "looks quite encouraging on the surface," with two main positive developments. First, housing prices, which have been rising since the outbreak of the pandemic, are now indeed slowing down. Second, the impacts related to tariffs are gradually fading. As this trend dissipates, the Federal Reserve should be more willing to cut interest rates, and Wilding believes that it is reasonable to expect two more rate cuts this year.

ChainCatcher news, according to Jin Shi reports, Pacific Investment Management Company (PIMCO) economist Tiffany Wilding pointed out in a report that although U.S. President Trump may continue to criticize the Federal Reserve and call for interest rate cuts in the short term, he will not replace the current chairman Powell.Instead, Trump will influence Federal Reserve decisions through upcoming appointments, including the term of Governor Quigley expiring in January and the term of Chairman Powell expiring in May.It is important to note that Powell's term as a governor will last until January 2028. Wilding emphasized that regardless of whom Trump nominates to succeed as chairman, the new leader must present a convincing monetary policy proposal, first gaining Senate approval and then seeking majority support from the Federal Open Market Committee.

ChainCatcher news, Alec Kersman, Managing Director and Head of Asia Pacific at Pacific Investment Management Company (PIMCO), stated that due to the implementation of tariff measures by the United States, the likelihood of the U.S. falling into an economic recession this year has increased, estimating the probability at 35%. This probability is higher than the 15% assessed by Pimco last December.Nevertheless, Pimco's fundamental forecast for the U.S. economy is growth of 1% to 1.5%, although this is a "significant decline" from previous expectations. Kamal Bhatia, President and CEO of Principal Asset Management, stated that such trade policies will promote domestic consumption, helping the U.S. economy grow above expectations. Consumer spending on goods and services accounts for about two-thirds of U.S. GDP. Bhatia noted that the increase in domestic spending triggered by tariffs is "highly likely" to drive U.S. GDP to "perform better than expected."

ChainCatcher news, according to the Financial Times, Dan Ivascyn, Chief Investment Officer of Pacific Investment Management Company (PIMCO), stated that the Federal Reserve will maintain interest rates unchanged in the foreseeable future, and there is even a possibility of an interest rate hike until Trump's policy direction becomes clear.Ivascyn pointed out that the latest consumer survey shows that inflation expectations have risen, and inflationary pressures have not fully dissipated. He believes that Trump's policies will have a positive impact on economic growth and productivity in the long term, but may bring pressure in the short term. The Federal Reserve will remain cautious until economic data and policy direction become clearer.

ChainCatcher news, investment giant Pimco's Chief Investment Officer stated that Trump's economic plan could "add fuel to the fire" for the U.S. economy, forcing the Federal Reserve to stop cutting interest rates, thereby reversing the rise of U.S. stocks after Trump's victory. (Jin Ten)