Sat, Feb 24, 2018
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. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  2. Opalesque Exclusive: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  3. Institutional Investors - Hedge funds regain their appeal for a $57 billion asset manager, Private credit strategies in stratosphere[more]

    Hedge funds regain their appeal for a $57 billion asset manager From Bloomberg.com: With volatility back on the radar, one of the Nordic region's biggest asset managers is considering relying a bit more on hedge funds to help oversee his portfolio. Mikko Mursula, the chief investment off

  4. Investing - All aboard for hedge funds as trade tide lifts shipping, Hedge funds pile into Time Warner in bet on merger success[more]

    All aboard for hedge funds as trade tide lifts shipping From Reuters.com: Forced to abandon ship after mistiming their investments five years ago, hedge funds are venturing back in a bid to profit from growing global trade flows. Around 90 percent of traded goods by volume are tran

  5. Investing - Hedge funds turn short on tech just as stock rally takes off, After biggest short, speculators slash bearish US bond bets as supply deluge looms[more]

    Hedge funds turn short on tech just as stock rally takes off From Newsmax.com: A key group of investors has just missed out on the biggest tech-stock rally since 2014. Hedge funds and other large speculators turned net short on Nasdaq 100 Index futures for the first time in 21 months, ac