My colleagues and I are very pleased to be meeting with many of our institutional clients today, at the inaugural @blackrock Fixed Income Summit!
We’ll discuss how the fixed #income universe has dramatically changed in recent years, where we think it’s heading in the years to come, and how best to structure more #resilient-portfolios for the period ahead; some thoughts, in preview:
Due to the #demographic revolution underway across the globe, as well as massive growth in pension, insurance and central bank assets, there is roughly 3X as much capital that needs to be #invested today as was the case in the early-2000s.
And while record U.S. Treasury net issuance is boosting the supply of #bonds and helping to meet that demand, spread-sector net issuance is expected to be lower in 2019 (and well off pre-crisis highs), and outside the U.S. developed market fixed #income net issuance is meager.
This dynamic has resulted in a dramatic supply/demand imbalance for #yielding assets, which is likely to persist for many years, and can be clearly witnessed in the impressive capital flows into fixed income in recent years.
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