Yields surged to kick off September. BlackRock spotted solid income in some corner of the market. They released this information after the surge happened because that's when advice works best.
The summary tells investors to be picky about credit risk. This is the equivalent of your doctor telling you to be careful about what you eat while you're choking on a ham sandwich.
BlackRock manages ten trillion dollars. They employ thousands of analysts. They have Bloomberg terminals in every bathroom stall. And their big call is that higher yields offer a solid starting point for returns in fixed income. Breathtaking stuff. Next they'll reveal that buying low and selling high generates profit.
The corner of the market they spotted has solid income. Not great income. Not exceptional income. Solid income. The kind of income that makes you say yeah okay sure whatever and then go back to your life.
September started. Yields surged. BlackRock looked around. They spotted something. They told everyone to be picky. Retail traders heard this and immediately bought the least picky investment vehicles available because reading past the headline requires a subscription.
Fixed income investors now have a solid starting point for returns. They can take that starting point and walk it right into a corner of the market that BlackRock spotted from their office in midtown Manhattan using data that was already three days old by the time it hit your feed.
The entire thesis rests on being selective about credit risk in an environment where everyone already took credit risk last month when yields were lower and BlackRock was busy spotting different corners.
Ten trillion under management and the move is telling people to be careful after the thing already happened.
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