When BlackRock raised billions of dollars in debt financing for a Meta data center, one type of investor was the asset management giant deliberately shunned: investors looking for quick profits. People familiar with the matter said that in order to protect this transaction from the cooling of the AI-related bond market, underwriters intend to prioritize so-called “real money” investors such as pension and insurance funds when placing bonds. Such institutions usually hold for a long time after purchase. Unlike investors who trade frequently, the latter's rapid entry and exit strategy may quickly slow down the performance of bonds in the secondary market. This was a defensive move taken after investor preferences were reversed. As tech company borrowing surges, buyers are increasingly worried that huge AI expenses will ultimately not bring corresponding returns.

When BlackRock raised billions of dollars in debt financing for a Meta data center, one type of investor was the asset management giant deliberately shunned: investors looking for quick profits. People familiar with the matter said that in order to protect this transaction from the cooling of the AI-related bond market, underwriters intend to prioritize so-called “real money” investors such as pension and insurance funds when placing bonds. Such institutions usually hold for a long time after purchase. Unlike investors who trade frequently, the latter's rapid entry and exit strategy may quickly slow down the performance of bonds in the secondary market. This was a defensive move taken after investor preferences were reversed. As tech company borrowing surges, buyers are increasingly worried that huge AI expenses will ultimately not bring corresponding returns.