Iran Conflict Is Tearing Up the Bond Market’s 2026 Playbook

Even before last weekend, Pacific Investment Management Co.’s Daniel Ivascyn was preparing for turbulence.

With AI-related jitters reverberating through markets and private credit tremors setting off alarms, the chief investment officer at Pimco and manager of the world’s largest active bond fund was making adjustments — reducing corporate credit and stockpiling cash-equivalent holdings that could be quickly sold to take advantage of any dislocations, while still favoring medium-dated Treasuries.