Ok hold on. I don't think any of us were clearly understanding that you want to wet the pellets down and turn it all to sawdust, and then use the sawdust as bedding. I would not recommend that you use this in this form.
Let me clarify... The reason pelleted bedding is suitable for pigs is because as they urinate on it, and pellets turn into sawdust, the sawdust actually works its way down through the pellets so the top layer generally stays in dry pelleted form. There is very little saw dust particle left on the top layer to pose any risk to the pigs. Once a week, or when enough of the pellets have softened that the pigs are exposed to large area's of sawdust, whichever comes first, then it is time to change the bedding out with new pellets.
The situation with horses is very different. They would have a hard time walking on a barn full of pellets, so yeah the bedding is wet down and turned to sawdust. This can safely be done for horses because 1)horses respiratory tract isn't as sensitive as a gp's, and 2)horses don't spend 100% of the time with their noses only inches from the sawdust breathing it in.
When I use wood shavings for my pigs, even with aspen, there is always atleast a small amount of sawdust in the bag. I always shake the bag vigorously before I take anything out to place in the cage--to make the dust fall down in the bag. I always throw the last few inches of shavings in the bag in the garbage as it is usually always full of dust.
In a nutshell. Wood pellet bedding is safe for your pigs in it's original pelleted form. It is not safe or suitable for your pigs in the saw dust form.