Fixed Income

Fixed Income

Explore our strategy focused on the front end of the yield curve

Why BlackRock for fixed income?

BlackRock offers a comprehensive fixed income platform, managing more than US$1.9 trillion in active and index mandates across a variety of vehicles and strategies around the globe1. Our platform features proprietary tools, expert and efficient trading, and the infrastructure necessary to meet the operational requirements our clients expect.

Comprehensive investment capabilities
Comprehensive investment capabilities
Extensive platform of fixed income capabilities spanning index to alpha seeking to alternatives, across public and private markets
Autonomous teams supported by BlackRock platform
Autonomous teams supported by BlackRock platform
Dedicated investment professionals with autonomy and accountability for portfolio objectives and performance
Distinct culture of risk management
Distinct culture of risk management
Aladdin’s robust risk management and analytics system can help build portfolios that weather all market environments
Vast scale, access and expertise
Vast scale, access and expertise
Deep resources, investment expertise across regions, sectors and styles, and exceptional access to fixed income capital markets

What themes have we been seeing among corporate pension plans?

It’s been an exciting time lately for corporate pensions. Average funded ratios have risen to all-time highs since 2008, and a lot of plans are now looking to preserve those levels by taking risk off the table through an LDI approach.

So, at BlackRock we manage over $400 billion in LDI assets globally…and we’ve helped pensions across regions in their de-risking approaches.

What we’ve seen is that customization is a key theme to meet liabilities and preserve funded levels. So, transitioning from the traditional capital allocation-based targets to allocations that look and feel like your liability, that can generally help avoid unintended outcomes. 

We think that plans can benefit from more flexibility in their fixed income buckets, and that they should take a fresh look at capital-efficient Treasury instruments to match their liability rate exposures. One plan we recently partnered with explored the use of levered Treasury funds, and they found they could increase their plan hedge ratio from 35% to upwards of 65%....and that was without adjusting their split of growth vs. fixed income assets in the portfolio. 

Another trend we’ve seen, is that with higher funded ratios, more plan sponsors are considering pension risk transfer, or “PRT”. 2021 has been a big year for PRT deals and it could end up being one of the largest in US history.

It’s really important, when considering PRT, to get customization right. The last thing a plan sponsor wants to happen, is for a deal to fall off track due to the markets. And this requires finding partners, with experience, that can customize the hedging strategy, and pay careful attention to both lump sum activity and insurer pricing dynamics.

Now, at BlackRock we’ve supported over $17 billion in pension risk transfers in the US, and we have experience with managing transaction cost savings and customization to help provide better outcomes for our clients and their participants.

What themes have we been seeing among corporate pension plans?

Matt Nili, Managing Director and Head of U.S. and Canada Liability Driven Investing (LDI) provides an update on recent themes we have been seeing among corporate pension plans.

Learn more about fixed income investing at BlackRock

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Thirty years of innovation, anticipating changing client needs

    • BlackRock founded as a mortgage manager
    • Introduced first fixed income index funds
    • Awarded first Insurance company mandate, the first step in building the Financial Institutions Group (FIG)
    • Began managing a fundamental relative value fixed income hedge fund
    • Created the first EMEA fixed income index fund
    • Won first external Aladdin client
    • Created the industry’s first fixed income ETFs
    • MLIM/BlackRock merger expanded Fundamental non-dollar and municipal capabilities
    • Introduced first global credit-screened fund
    • Launched Financial Markets Advisory business in response to global financial crisis; partnered with government agencies in work out situations and capital raises
    • BGI/BlackRock merger added index and systematic fixed income capabilities
    • Introduced synthetic long duration funds for liability-driven investing clients
    • Pioneered strategic income opportunities, one of the industry’s first unconstrained fixed income strategies
    • Initiated the first smart beta fixed income strategy
    • Partnered with JP Morgan to launch emerging markets ESG indices

People, process & platform focused on solving client challenges

The BlackRock platform enables a comprehensive and collaborative medium for solving client challenges.

    • 500+ fixed income professionals across 8 global investment centers4
    • Portfolios reflect local knowledge, experience, and global insights from across the firm
    • Daily global meeting with equity, cash, and alternative teams led by the BlackRock Investment Institute
    • Risk & Quantitative Analytics (RQA) professionals embedded with investors to provide independent oversight
    • Leverage Aladdin capabilities to continuously develop and refine risk analytics
    • Autonomous investment teams have full accountability for delivering results – leveraging resources from the broader firm
    • 24-hour global trading platform ($10.5T USD of annual FI trading volume5) leverages local knowledge and sector expertise
    • $64 trillion USD in transactions across global capital markets in all asset classes last year5, giving us unique market data and insights
    • Shared research platform, leveraging investment insights across the broader firm

The industry leader for innovative fixed income solutions6

BlackRock Global Fixed Income combines diverse investment styles, comprehensive investment capabilities and a robust talent and technology platform.

This graphic depicts BlackRock fixed income platform.

Source: BlackRock; as of December 31, 2018. $ represented in USD. 1. Systematic alpha seeking includes alternatives and portfolios managed as part of multi-asset strategies.

What does ESG integration mean for fixed income?

BlackRock is committed to sustainable outcomes and long-term value for our firm and our clients. We evaluate companies based on their environmental, social and governance (ESG) business practices and incorporate that into our investment decisions to help determine the risk and opportunities.

ESG integration is the practice of incorporating ESG information into fixed income investment decisions to help enhance risk-adjusted returns, regardless of whether a strategy has a sustainable mandate. There is no one-size-fits-all approach but at BlackRock, we see it as being about bringing research, data and insights available to our fixed income portfolio managers

This graphic explains ESG integration in fixed income.
Sustainable investing at BlackRock
We believe sustainability-related issues – ranging from board composition to human capital management to climate change – have real impacts.
Sustainable investing at BlackRock

BlackRock's latest fixed income insights


Richard Kushel
Senior Managing Director, Global Head of Fixed Income
Rich Kushel is head of the Multi-Asset Strategies and Global Fixed Income groups and oversees the Client Portfolio Solutions group. He is a member of the Global
Read biography
Peter Hayes
Managing Director, Chief Investment Officer and Head of the Municipal Bond Group
Read biography
James Keenan
Managing Director, Chief Investment Officer and Global Co-Head of Credit
Read biography
Tom Parker
Managing Director, Chief Investment Officer of Systematic Fixed Income
Read biography
Rick Rieder
Managing Director, Chief Investment Officer of Global Fixed Income
Read biography

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