Rick Rieder Favors Investment-Grade Bonds for Fourth-Quarter Yields

BlackRock fixed-income chief Rick Rieder favors investment-grade corporate bonds for the fourth quarter, arguing that their yields can pair with stronger borrower finances as cloud companies fund artificial intelligence infrastructure. His hypothetical example is a diversified fixed-income portfolio yielding more than 7%, with duration below three years and an average A− credit rating. Rieder did not identify its holdings or name a fund matching all three characteristics. The iShares Flexible Income Active ETF (BINC) had a 5.66% 30-day SEC yield and 2.99 years of effective duration as of Oct. 15.

Source: TokenPost