March 20 (Reuters) - BlackRock Investment Institute said on Monday it was downgrading credit and preferred short-term bonds for income, with strategists pointing to financial cracks from rapid rate hikes.
"We stay risk-off: underweight developed market $(DM)$ stocks and trim credit to neutral. But we are ready to seize opportunities as macro damage gets priced in. We overweight very short-term government paper for income and prefer emerging markets," BlackRock Investment Institute strategists wrote in a note to clients.
The BlackRock Investment Institute is an arm of U.S.-based investment firm BlackRock that provides proprietary investment research.
(Reporting by Noel Randewich)
((noel.randewich@tr.com; Twitter: @randewich;))
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