Fixed Income: No Time To Yield!

For more than a decade, Larry has written an annual letter not only to focus on critical long-term issues but also to start a conversation about finding solutions. This year, Larry Fink, CEO and Chairman of BlackRock is considering the challenge of retirement, why it has become an increasingly difficult proposition for too many, and what opportunities exist and will be developed to help people achieve their financial freedom.This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. In the UK and Non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets. For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosuresSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

You might not think of insurance as such a key input to their overall consumption basket, but the impact of the insurance industry is felt far beyond what individual consumers pay for individual policies and extends broadly throughout the supply chain as a necessary input for many industries in the production process.Mike Pensky, portfolio manager within BlackRock's Multi-Asset Group joins Oscar to help us understand the connection between insurance and inflation, the possibility for rising insurance premiums to persist, and how investors can position their portfolios in a new market regime.Sources: Insurance, Inflation, Issuance, BlackRock Insights, Dec 4th 2023; Bureau of Labor Statistics, March 2024This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. In the UK and Non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets. For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosuresSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The BlackRock Investment Institute has outlined five mega forces that are shaping the macroeconomic landscape and demographic divergence is another one of them. The aging of populations will limit how much major economies can produce and grow, leaving governments with less tax revenue to support rising retirement and healthcare expenses. The impact of fewer workers could result in lower corporate profits and higher government debt unless economies adapt to mitigate these pressures. So, what does this mean for investors and what risks and opportunities does this megaforce create?Nicholas Fawcett, Senior Economist in the BlackRock Investment Institute and Peter Fisher, head of BlackRock's Global Retirement Initiative join Oscar to uncover the impact of this megaforce on global economies and the potential risks and opportunities investors should consider.Sources: “The peak 65® Zone Is Here”, Retirement Income Institute, January 2024; Decoding Demographic Divergence, BlackRock, March 2024; U.N. World Population Projections (WPP) (2022): scenario assuming medium fertility; U.S. Congressional Budget Office (2024), The Budget and Economic Outlook: 2024 to 2034, February 2024See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Bond yields are higher today than they were 20 years ago. With inflation indicators falling around the globe, the time of elevated cash rates may be drawn to a close.Investors are moving back into bonds in record numbers, with 2023 global bond ETF inflows totaling $333 billion. Yet, as global central banks appear at or near the end of a tightening cycle designed to quell the most significant surge in inflation in decades, investors could be moving even more quickly back into fixed income.  Steve Laipply, Global co-head of iShares’ fixed income ETFs joins Oscar to help us understand what has been driving investors towards, or in some cases back, to the fixed income market and what investors should be looking for as central banks appear set to loosen their grip on interest rates.Sources: ETF Flows Data: BlackRock Global Business Intelligence, as of December 31, 2023. Flows for fixed income ETFs globally totaled $265 billion in 2022, compared with $333 billion in 2023. Previous annual record was in 2021 with $282 billion; Mutual Fund Flows Data: Simfund for US MFs, Broadridge for Non-US Mutual Funds, both as of December 31, 2023. Closed end funds excluded throughout. Fixed Income Mutual Funds saw $711 billion in outflows in 2022, and $151 billion in inflows in 2023; Inflation Data: The World Bank as of Feb. 29, 2024. U.S. annual CPI for 2022 was 8.0%, compared with previous high of 13.5% in 1980. European Union CPI for 2022 was 8.8%, compared with previous high of 12.9% in 1980; Yield to Worst Data: Bloomberg, as at March, 25 2024. 3 Month US Treasury Bills at 5.38%; 10 Year US Treasury Yield at 4.25%; US High Yield (based on Markit iBoxx US Liquid High Yield Index) as at Jan. 2, 2023 was 8.7%.. and yield to worst as at Dec. 29, 2023 was 7.4%; Correlation Data: Bloomberg, as at March, 25 2024. Assessed 5 Year and 20 Year Correlation between 10 Year US Treasury Yield and S&P 500. 20 Year Correlation is 0.15%, and 5 Year Correlation is -0.03%. Based on monthly data points; Return Data: BlackRock, Bloomberg, as at March, 25 2024. High Yield references the Markit iBoxx US Liquid High Yield Index from Jan.1, 2023 to Dec. 31, 2023. Total Return = 12.89%;This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. In the UK and Non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets. For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosuresSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In the ever-evolving tapestry of geopolitics and economics, the Asia-Pacific region stands at a pivotal juncture. In this special episode, we took The Bid down under to record this episode live in Sydney. Wei Li, Global Chief Investment Strategist for BlackRock joined Oscar Pulido to discus the intricacies of high inflation, emerging competing geopolitical bloc, how a momentous global election year will impact Asia-Pacific region and what opportunities investors can expect from the region.This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. In the UK and Non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets.For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosuresSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Younger investors are looking at a future with aging populations and reduced labor forces and a new age of technology and connectivity that is impacting their values and expectations. On the other hand, pre-retirees now are having to consider that fact that their generation will live longer and what do they want to prioritize in their retirement years. So what do investors at different stages and ages need to consider when planning for their future, and how do those approaches differ? In this special episode, we took The Bid down under to record live. Liz Koehler, Head of Advisor Engagement for BlackRock’s US Wealth Advisory business joined Oscar Pulido to discuss how the younger generation are thinking about their future and what pre-retirees should be thinking about as they head toward retirement age, and opportunities all investors could take advantage of as they prepare for their futures.Sources: “Women, Money, Confidence”, Merrill Lynch 2018See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Does inflation impact women differently, are women more risk averse investors than their counterparts and what are some ways in which women can become better investors? Oscar Pulido, welcomes Anne Ackerley, head of BlackRock's Retirement Group, and Gargi Pal Chaudhuri, head of iShares Investment Strategy and Markets Coverage at BlackRock, to discuss the unique challenges women face when investing for the future and how their improving prospects can benefit the wider economy.Sources: Bloomberg, Bureau of Labor Statistics. As of January 31, 2024; New York City Department of Consumer Affairs. As of December 31, 2015; WEF 2023, What's really driving the gender retirement savings gap?; Mercer Global Pension Index, 2023; OECD: Gender Equality Pension Benefits, 2020; BlackRock's 2023 Read on Retirement; Bloomberg. Returns as determined by S&P 500 Index and cash equivalent as represented Bloomberg US Treasury Bill 1–3M. Returns rebased to 0. As of December 31, 2023; Hewlett Packard internal report. As of December 31, 2014; Wells Fargo. As of December 31, 2023; Payroll Deduction Retirement Programs Build Economic Security, AARP, July 2022; AARP Public Policy Institute, 2022;See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In this episode, host Oscar Pulido speaks with Dr. Mary Murphy, social psychologist at Stanford and Indiana Universities, and author of the forthcoming book Cultures of Growth, about the importance of fostering a culture of growth within organizations. Dr. Murphy discusses how a growth mindset can drive innovation, resilience, and adaptability, and shares insights on how leaders and investors can cultivate a growth-oriented culture.This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. In the UK and Non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets. For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosuresSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In honor of Black History month, host Oscar Pulido sits down with the founders of Earn Your Leisure, Troy Millings and Rashad Bilal, to discover how this dynamic duo is revolutionizing the financial literacy landscape. Breaking down the importance of a hands-on learning experience, Troy and Rashad share their journey of transforming financial education through their multimedia business platform making it entertaining and relatable to all.Sources: “How To Build Black Wealth, Brookings” July 2020; “Black Investors Are the Biggest New Group of Stock Buyers” Wall Street Journal, January 2024; Investor Progress Report 2023, BlackRockThis content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. In the UK and Non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets. For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosuresSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The investment landscape surrounding the low carbon transition is poised for change and opportunity. Oscar Pulido explores the brown-to-green transition and the role of mining materials in the transition to a low carbon economy. Joined by Olivia Markham, a portfolio manager from BlackRock's Fundamental Equity Team, together they discuss the changes in the global economy, companies' approach to reducing carbon emissions, and the investment opportunities in the low carbon transition.Sources:IEA March 2023; World Resources Institute October 2023, BHP and FE analysis, Sept. 2023; BHP analysis, August 2023; Brown to Green Materials Whitepaper, BlackRock Sept 2023; New Energy Outlook 2022, Bloomberg NEF 2022; Tracking The Low Carbon Transition, BlackRock, July 2023This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener.In the UK and Non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets. For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosuresSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.