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.

In a note published yesterday evening (9 May), 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." The Big Question: Which fund or trust are you using to inflation-proof your portfolio? While BII pointed out bonds are "generally not attractive in inflationary times" and it therefore remains "well underweight" the asset c...

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