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Exclusive | BlackRock ETFs Among Biggest Investors in Meta’s Giant Data-Center Debt Deal

1. BlackRock ETFs invested over $3 billion in Hyperion bonds for a data center. 2. The Hyperion bond sale is the largest private-debt offering, yielding 6.58%. 3. BlackRock's active high-yield ETF made a $2.1 billion investment in Hyperion. 4. Pimco was the largest buyer, purchasing $18 billion of the Hyperion bonds. 5. The bonds have appreciated, indicating large potential gains for early investors.

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FAQ

Why Bullish?

The substantial investment by BlackRock in high-yield bonds reflects confidence in future cash flows. Similar past investments have led to positive stock performance for BLK.

How important is it?

The investment aligns with ongoing trends in AI infrastructure, indicating a robust future for BlackRock's funds.

Why Long Term?

The long-term demand for data centers bolstered by AI suggests sustained growth potential for BlackRock’s investment. Historically, strategic investments in tech-related infrastructure have yielded positive results.

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