According to Blackrock’s Russell Brownback, investors looking for income should stop “noise” from shaking the market and gain attractive yields beyond traditional fixed income holdings. Concerns about President Donald Trump’s tariffs have caused market volatility and have fluctuated on 10-year fiscal yields. However, the economic foundation is still very solid, he said. “You already have a structural labor market,” said Brownback, head of the global macro positioning team in BlackRock. “You have a structural labor market,” he said. “The AI revolution is causing infrastructure to be built, which should continue for the rest of the decade, and productivity gains are early on. “There will be noisy policy implementation, but we feel very good about the foundation of today’s economy, which will keep the credit cycle quite benign.” “He prefers income over duration, but beyond the Bloomberg U.S. Total Bond Index, which tracks U.S. investment-grade bonds because the fixed income system has changed. Brownbeck also notes that fiscal markets are at risk due to policy and inflation uncertainty. “Today for us, fixed income vs. duration relative to income,” Brownbeck said. “These strategies that can get rid of these traditional benchmark holdings are indeed ways to optimize regimes. : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : “When investing in securitization products, Brownback took the barbell approach. “Overall, the caps on the screen at all these sub-asset levels have a large, short, short-term, triple-fold segment relative to corporate credit.” On the lower side, he insists on holding a single asset, single commission position in securities backed by commercial mortgages. “It really depends on geography,” he said. It will depend on the property. “Brownbeck said that in the U.S., Europe and Asia, there are also picks of high-yield bonds. He noted that these corporate bonds have become increasingly high asset classes, especially in the U.S. He has some stakes in the European investment grade, although he doesn’t allocate too much for investment-grade credit. He said that the currency conversion to the U.S. dollar can be very attractive and the technology is very good. The fund has about 22% more on agency residential mortgages. He said they look cheap historically compared to investment-grade credit, but they suffer some negative technical torture. He said the asset class has negative convexity, which is a measure of the relationship to bond prices and bond yields. “We don’t think rates will go in any direction, so there will be no negative convexity.” “In fact, we believe that the highly liquid sector has better value than the investment-grade market. But, of course, we will dynamically spin back and forth between opportunistic people. ”
BlackRock says investors can earn attractive income from these assets | Real Time Headlines
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