UPDATE 1-BlackRock Investment Institute downgrades credit, favors short-term bonds for income

Reuters2023-03-21

(Adds background on market moves, Fed rate expectations)

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 interest 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 weekly note to clients.

BlackRock Investment Institute is an arm of U.S.-based investment firm BlackRock that provides proprietary investment research.

Treasury yields rose on Monday as the takeover of Credit Suisse and central bank steps to shore up liquidity helped allay investor concerns as they gauge whether the Federal Reserve may pause its rate-hike cycle later this week.

Major central banks, faced with the

risk of a fast-moving loss of confidence

in the stability of the financial system, moved on Sunday to bolster the flow of cash around the world.

BlackRock Investment Institute said it expects the Fed to raise interest rates on Wednesday. Interest rate futures show 73% odds that the U.S. central bank will raise its benchmark overnight interest rate by 25 basis points, with 27% odds of no hike, according to CME Group's FedWatch tool.

(Reporting by Noel Randewich; Editing by Paul Simao)

((noel.randewich@tr.com; Twitter: @randewich;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2321655106?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-03-21 00:13","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2321655106","market":"us","top_or_hot":-1,"title":"UPDATE 1-BlackRock Investment Institute downgrades credit, favors short-term bonds for income","media":"Reuters","content":"<html><body><p>(Adds background on market moves, Fed rate expectations)</p><p>      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 interest rate hikes.</p><p>   \"We stay risk-off: underweight developed market <a href=\"https://laohu8.com/S/DM\">$(DM)$</a> 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 weekly note to clients.</p><p>   BlackRock Investment Institute is an arm of U.S.-based investment firm BlackRock that provides proprietary investment research.</p><p>   Treasury yields rose on Monday as the takeover of Credit Suisse and central bank steps to shore up liquidity helped allay investor concerns as they gauge whether the Federal Reserve may  pause its rate-hike cycle later this week.</p><p>       Major central banks, faced with the </p><p>   risk of a fast-moving loss of confidence</p><p>    in the stability of the financial system, moved on Sunday to bolster the flow of cash around the world.</p><p>   BlackRock Investment Institute said it expects the Fed to raise interest rates on Wednesday. Interest rate futures show 73% odds that the U.S. central bank will raise its benchmark overnight interest rate by 25 basis points, with 27% odds of no hike, according to CME Group's FedWatch tool.</p><p> (Reporting by Noel Randewich; Editing by Paul Simao)</p><p>((noel.randewich@tr.com; <a href=\"https://laohu8.com/S/TWTR\">Twitter</a>: @randewich;))</p></body></html>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>UPDATE 1-BlackRock Investment Institute downgrades credit, favors short-term bonds for income</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUPDATE 1-BlackRock Investment Institute downgrades credit, favors short-term bonds for income\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-03-21 00:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=http://api.rkd.refinitiv.com/api/News/News.svc/REST/News_1/RetrieveStoryML_1><strong>Reuters</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>(Adds background on market moves, Fed rate expectations)      March 20 (Reuters) - BlackRock Investment Institute said on Monday it was downgrading credit and preferred short-term bonds for income, ...</p>\n\n<a href=\"http://api.rkd.refinitiv.com/api/News/News.svc/REST/News_1/RetrieveStoryML_1\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BLK","symbol_name":"贝莱德","start_time":0,"source_url":"http://api.rkd.refinitiv.com/api/News/News.svc/REST/News_1/RetrieveStoryML_1","article_id":"2321655106","we_media_id":"1036604489","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2321655106","pubTimestamp":1679328831,"sourceInfo":null,"weMediaInfo":{"media_name":"Reuters","introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"summary":"(Adds background on market moves, Fed rate expectations)      March 20 (Reuters) - BlackRock Investm","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BLK":"贝莱德","BKN":"BKN基金","BK4161":"工业机械","BK4585":"ETF&股票定投概念","BK4567":"ESG概念","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4535":"淡马锡持仓","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","BK4588":"碎股","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","BK4546":"3D打印","BK4581":"高盛持仓","BK4135":"资产管理与托管银行","BK4504":"桥水持仓","DM":"Desktop Metal Inc.","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H"},"translate_title":"更新1-贝莱德投资研究所下调信贷评级，青睐短期债券以获取收入","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DM":1,"BLK":1,"BKN":0.9},"content_text":"(Adds background on market moves, Fed rate expectations)      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 interest 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 weekly note to clients.   BlackRock Investment Institute is an arm of U.S.-based investment firm BlackRock that provides proprietary investment research.   Treasury yields rose on Monday as the takeover of Credit Suisse and central bank steps to shore up liquidity helped allay investor concerns as they gauge whether the Federal Reserve may  pause its rate-hike cycle later this week.       Major central banks, faced with the    risk of a fast-moving loss of confidence    in the stability of the financial system, moved on Sunday to bolster the flow of cash around the world.   BlackRock Investment Institute said it expects the Fed to raise interest rates on Wednesday. Interest rate futures show 73% odds that the U.S. central bank will raise its benchmark overnight interest rate by 25 basis points, with 27% odds of no hike, according to CME Group's FedWatch tool. (Reporting by Noel Randewich; Editing by Paul Simao)((noel.randewich@tr.com; Twitter: @randewich;))","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2321655106"}