Pacific Investment Management Company (Pimco) strategically invested significantly in Colombian local peso bonds prior to the 2026 presidential elections, positioning itself to gain from the political outcome. In February 2026, funds managed by Pimco purchased a net 5.4 trillion pesos ($1.5 billion) of Colombia's local debt, solidifying its status as the largest foreign holder of the nation’s peso bonds. This followed an even larger acquisition in December 2025, when at least 60 Pimco funds bought over 19 trillion pesos ($5.3 billion) in Colombian debt through a private placement, helping the government finance its deficit. This aggressive accumulation occurred while many other foreign funds were exiting the market, reflecting a contrarian bet on Colombia's economic future.
Pimco's substantial gamble paid off following the election of conservative lawyer Abelardo de la Espriella in June 2026. Espriella's victory, which ushered in market-friendly policies, caused Colombian assets to rally significantly. Peso-denominated notes surged over 11% in a single month, and ten-year yields dropped by approximately 250 basis points from mid-May, falling below 12%. This positive market reaction validated Pimco's investment thesis, which was based on attractive real yields and a credible central bank stance.
By May 2026, Pimco's funds, including those managed by Oscar Medina and Nicolle Yapur, acquired a net 6.7 trillion pesos (roughly $2 billion) in Colombian sovereign bonds. This pushed the asset manager's share to about 30% of the $43 billion foreign-held debt pool, making it the largest recent buyer. While Pimco was increasing its exposure, other major foreign investors such as Norway’s sovereign wealth fund and Québec’s Caisse sold off their Colombian holdings, resulting in an overall foreign net outflow of $1.4 billion in May (excluding swap-related sales). Pimco's decision to double down on Colombian debt, despite some foreign investor exits, proved highly profitable as the market responded positively to the election results and the subsequent shift in political and economic direction.
