• BlackRock: Worldwide Leader in Asset and Risk Management

    While BlackRock is known as a large asset manager, our size says little about our structure and risk profile, our history, or how we function today. In this ViewPoint, we provide an overview of our organization and discuss the factors that differentiate BlackRock specifically, and the asset management industry more generally.

  • Exploring ESG: A Practitioner's Perspective

    This ViewPoint sets out our views on environmental, social, and governance (ESG) issues from the perspective of a fiduciary investor acting on behalf of asset owners. We define different ways that investors can integrate ESG factors in the investment process, outline our views on how ESG factors contribute to long-term value, and describe the current landscape of ESG disclosure initiatives across organizations and regulatory bodies. There are a number of challenges associated with assembling and evaluating ESG information. To address these challenges, we provide recommendations for policy makers to establish a framework that enables stakeholders and market participants to develop detailed ESG standards and best-practice guidelines.

  • Breaking Down the Data: A Closer Look at Bond Fund AUM

    This ViewPoint explores the diversity of US bond funds and the range of investments made by funds within each category. We then review data on investor flows in the largest categories of bond funds to analyze investor behavior in response to historical market stress events. We observe different flow patterns in various categories of bond funds during these periods of market stress, which suggests that bond fund investors do not treat all bond funds as a single asset class, even during times of market stress. Based on this analysis, we conclude that any macro stress test that is unable to capture the diversity of bond funds and incorporate performance of different fixed income asset classes is unlikely to produce results that are reflective of potential market dynamics, particularly if such models assume that all bond fund shareholders react in the same way in response to market stress. Stress testing of individual funds should be incorporated into mutual funds’ liquidity risk management programs.

  • Federal Housing Finance Agency’s Single Security Initiative

    This ViewPoint explores the Federal Housing Finance Agency’s Single Security Initiative. This initiative proposes to make the securities issued by Fannie Mae and Freddie Mac fungible, and thereby consolidate the liquid forward market in agency mortgages. We consider the benefits and challenges of the Single Security proposal and recommend steps to protect investors and facilitate market acceptance. We make a number of key observations and recommendations for a Single Security.

  • Modernization of US Asset Management Regulation

    The SEC has laid out an agenda for modernizing the regulation of US registered mutual funds and investment advisers, which includes initiatives for collecting additional data to enhance the SEC’s existing data analytics, finalizing rules for the use of derivatives in mutual funds, introducing liquidity risk management standards and stress testing for funds, and addressing the transition of client assets in the event of an asset manager winding down. BlackRock supports the modernization of rules governing mutual funds and their advisers, and we have commented on specific aspects of the rules proposed thus far. In this ViewPoint, we discuss each of the SEC's proposals and we lay out some guiding principles for considering the proposals as an integrated package.

  • Addressing Market Liquidity: A Broader Perspective on Today's Bond Markets

    To date, the dialogue on bond market liquidity has largely focused on a few key trends: (i) the decline in broker-dealer inventories, (ii) the decline in bond turnover (trading volume as currently measured divided by outstanding debt), (iii) the increase in corporate bond issuance, and (iv) the growth of bond mutual funds. While the data cited are factually accurate, these isolated data points do not present a complete picture of bond market participants or innovations that are supplementing traditional means of obtaining market liquidity. This ViewPoint is intended to inform discussions about bond market liquidity by integrating data we have known about for a long time (e.g., bond ownership by pensions and insurers) with newer data that highlights structural changes to bond market liquidity. Based on our synthesis of the new data with the old, we make a number of observations to provide a more comprehensive foundation for the dialogue on bond market liquidity.

  • Regulatory Developments in Europe - 2015 Update and Analysis

    This ViewPoint is the 2015 edition of our overview and analysis of key EU regulatory developments affecting the European financial markets and investors. Topics covered range from investment products, investor protection and distribution through to market structure and taxation.

Older Dec 18, 2015 To Aug 22, 2016