BlackRock fixed-income CIO Rick Rieder called the global bond sell-off “not a crisis, but an eye-opener,” citing refinancing risks for companies and describing housing as frozen amid affordability problems. He said there is no single yield level that marks a breaking point.
Rieder said his Bink ETF yielded 7.2%, carried less than three years of interest-rate risk and had an A-minus rating. He compared that with his expectation of 10%–12% equity returns over 12 months, while saying he had shifted his portfolios more toward income.
Rieder said he was surprised the stock market fell less than he had expected the previous day. He cited low equity volatility, investors reducing risk ahead of the Fed and supportive market technicals; he also said he thought large IPOs were likely to proceed and described equities as “just okay.”
