BlackRock Urges Credit Income Strategy as Fixed-Income Portfolios Yield Above 6%

4 articles · Updated · Bloomberg · May 13

BlackRock said investors should stay invested in credit markets for income rather than chase spread moves during the current bout of volatility.
Wednesday’s quarterly fixed-income outlook said geopolitical uncertainty has pushed many investors to the sidelines, but dislocations are opening opportunities for patient capital where prices have diverged from fundamentals.
BlackRock estimated diversified fixed-income portfolios can yield more than 6%, versus 4.6% for the Bloomberg US Aggregate Bond Index, reinforcing its preference for income generation.
The firm framed the setup as one of the strongest bond-market opportunities in more than a decade, with active management increasingly important amid supply-driven inflation and policy uncertainty.

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