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BlackRock Sees Rotation Into Credit Funds as Investors Return

Nov. 18, 2022, 4:26 PM

BlackRock Inc. is betting on a surge of demand for the battered bonds of US and European companies.

With cooling inflation data signaling a slowing in the US Federal Reserve’s interest-rate increases, yields at both the high-grade and junk end of credit are now starting to look appealing, according to Carolyn Weinberg, global head of product for BlackRock’s iShares and index investments. The Fed’s monetary policies typically influence central bank actions globally.

“We are at the beginning of a rotation as investors come back into credit,” Weinberg said in an interview. “With the rapid move in front-end rates, the ...