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    We look at the markets today as, we're in a low stable growth environment, based on what policy has done on the fiscal side and the monetary side. Nothing has changed with our overall view. There are risks that have escalated a bit in the last month. Geopolitical risk in Russia and the Ukraine, uncertainty in the Gaza Strip, as well as some inflationary pressures and what the Fed is going to do.

    All of these things have led to a bit of a pause in the market and a pullback in equity risk as well as spread risk. Nothing has changed in our view. Spreads are much tighter today, but the overall economic risk and volatility is much lower.

    In fixed income, most assets around the world are still trading between 0 and 2 percent. If you move into equities, you trade with a much larger volatility and the drawdown risk associated to it.

    So credit and high-yield credit is a good opportunity for those to create that extra income in fixed income portfolios but have less volatility than the equity market. So we think that the sell off is fair based off of the new risk in the market, but high yield is still a good asset class to own for the longer term.

Investing involves risk, including possible loss of principal.

Investing involves risk including loss of principal. The opinions presented are those of James Keenan, BlackRock's Head of Americas Credit, as of August 8th, 2013 and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and/or made investment decisions that may, in certain respects, not be consistent with the information contained in this presentation. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this presentation are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Past performance does not guarantee future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the viewer.

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