economy
BlackRock says these bonds have attractive yields
Investors may want to focus on bonds that are tied to the real economy, BlackRock says.
TL;DR
- BlackRock advises focusing on bonds tied to the real economy for solid income.
- 'HALO' assets (Heavy Assets, Low Obsolescence) are favored for their tangible nature and reduced AI disruption risk.
- Opportunities include securitized products like commercial mortgage-backed securities (CMBS), residential MBS, and asset-backed securities (ABS).
- The focus is on front-end to belly duration (0-6 years) for attractive income opportunities.
- Concerns about inflation, AI disruption, and geopolitical events have caused market volatility.