BlackRock Investment Institute: 'Pockets of value' restored in bond markets

Declining macro outlook

Lauren Mason
clock • 2 min read

BlackRock Investment Institute’s research team has upgraded its outlook for European government bonds and investment grade credit amid the “worsening macro outlook”, in a move that has “nudged down risk” across its asset allocation.

BII said the commodities price shock and growth slowdown in China also led to a downgrade of Chinese assets and Asia fixed income. "We see little chance of a perfect economic scenario of low inflation and growth humming along," the team warned. "Last week's market rout shows investors are adjusting to this reality." While BII pointed out bonds are "generally not attractive in inflationary times" and it therefore remains "well underweight" the asset class, it believes the broad-based sell-off experienced year to date has "restored some value in pockets of the market". "First, we hav...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Autumn Budget 24: Reeves sets 20% IHT rate on AIM shares

Autumn Budget 24: Reeves sets 20% IHT rate on AIM shares

Chancellor unveils 50% relief

Cristian Angeloni
clock 30 October 2024 • 1 min read
Cash in Conversation: A poll for financial advisers

Cash in Conversation: A poll for financial advisers

Professional Adviser
clock 29 October 2024 • 1 min read
The challenges and opportunities for active managers

The challenges and opportunities for active managers

'We believe good active managers always have a place in a portfolio'

Darius McDermott
clock 29 October 2024 • 5 min read