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.

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." While BII pointed out bonds are "generally not attractive in inflationary times" and it therefore remains "well underweight" the asset class, it believes the broad-based sell-off experienced year to date has "restored some value in pockets of the market". "First, we hav...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

London Stock Exchange granted FCA approval to become inaugural PISCES operator

London Stock Exchange granted FCA approval to become inaugural PISCES operator

To launch later this year

Cristian Angeloni
clock 27 August 2025 • 1 min read
Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Catch up on the discussion

Professional Adviser
clock 21 August 2025 • 1 min read
PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

Aberdeen Investments Senior Investment Director and Head of Managed & Model Solutions Justin Jones shares what sets MyFolio Index apart following its Best Risk Targeted Range of Funds award win at the Professional Adviser Awards 2025.

Professional Adviser
clock 19 August 2025 • 3 min read