Fri, Nov 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bonds are struggling in difficult investment climate says Blackrock Institute

Friday, March 30, 2012

Beverly Chandler, Opalesque London: Blackrock’s Investment team from its Investment Institute has updated its January report to comment on the record lows in bond yields. They ask three questions: Is this another bout of rudderless "risk-on/risk-off" trading? Or does the yield spike mark the end of the 30-year bull market in bonds? And where does that leave the global rally in stocks? ,p> Looking forward, the team, comprising Russ Koesterich Chief Investment Strategist BlackRock iShares, Rick Rieder Chief Investment Officer BlackRock Fundamental Fixed Income and Richard Turnill Head of BlackRock’s Global Equity Team believe that the yields of many safe-haven government bonds have been beaten down so much that many offer negative returns after factoring in inflation. "Even after the recent yield spike, many bonds look richly valued. We believe yields will grind higher, with benchmark 10-year US government bonds likely yielding 2.75% to 3% by year end. This is no radical change: they yielded 3% back in September 2011 when the economy looked far sicker than today" the team says.

They do not believe that a yield explosion is in the cards. "Global central banks stand ready to buy long-term bonds if higher yields threaten the economic recovery. Insurers and pension funds have been eager buyers because they are desperate for yield in a new world of long liv......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  2. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Hedge fund Oceanwood raises $2bn, to close to new investors[more]

    From Reuters.com: Europe-focused hedge fund Oceanwood Capital Management is closing its fund to new investors after its assets under management hit $2 billion (1 billion pounds) recently, a source with direct knowledge of the matter said. Oceanwood, a multi-strategy hedge fund spinout from Tudor Gro

  5. Opalesque Exclusive: Gray Ghost Ventures aims to make impact investing commercially viable[more]

    Bailey McCann, Opalesque New York: At a time when investing in emerging markets may be falling out of fashion among some investors, Gray Ghost Ventures is confident that great opportunity exists in the emerging markets. The firm may have a unique view into this space as one of the first private