Sat, Apr 18, 2015
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. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  2. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  3. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

  4. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  5. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

 

banner