According to PIMCO, AI-related borrowers accounted for nearly half of year-to-date gross supply of non-financial US investment-grade corporate bonds with maturities beyond 15 years as of late October 2026. This surge reflects debt-financed AI infrastructure spending by hyperscalers and data centers, with 30-year bonds capturing more than 30% of the market compared with about 13% for 10-year bonds in certain periods. Multi-asset strategist Lotfi Karoui advises investors to diversify beyond AI-heavy corporate credit toward agency mortgage-backed securities, highly rated private mortgage bonds and emerging-market debt. PIMCO says these assets offer lower correlation and better carry, while political restrictions on data-center development could slow issuance without materially changing AI financing needs. The firm has cut some AI data-center holdings by roughly 50%, including investments linked to Meta and Oracle, but continues to participate selectively because its concern is concentration rather than credit quality.
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