Fri, Jul 25, 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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro