Pimco CEO Roman on Data Center Financing and Debt Deals

• PIMCO finds debt deals for data center financing 'incredibly attractive' due to the significant capital expenditure required for infrastructure.
• The firm anticipates more large debt deals, structured in various ways, and actively seeks attractive investment opportunities globally, including in the Middle East.
• Roman highlights AI as an 'incredibly deflationary' force and a major CAPEX investment for PIMCO, used for predictive analytics and fraud detection in areas like mortgage origination.
• He emphasizes the importance of understanding investor tolerance for illiquidity and fair market price discovery in private credit, while noting the Fed is unlikely to cut rates soon due to inflation and geopolitical factors.

PIMCO CEO Emmanuel Roman discusses the firm's strategy in data center financing and large debt deals, highlighting the 'enormous amount of CAPEX' needed and the attractiveness of debt investments. He notes PIMCO's role in co-investing rather than distributing and sees AI as a powerful, deflationary force driving new opportunities. Roman also touches on the current interest rate environment and liquidity in private credit.