Uncover your hidden risk

As an investor, my client's approach is
and my client uses fixed income to
See my risk

Manage your risk with our
fixed income strategies

Investors trust us with more assets than any other fixed
income manager1.

87%

14 of 23 of our U.S. bond funds, accounting for 87% of assets, have first quartile performance2.


87%

20 of 23 of our U.S. bond funds, accounting for 87% of our fixed income funds, are priced in the least expensive quartile3.

We also have the largest selection of bond ETFs in the U.S.4 and are the #1 provider of separately managed accounts5. All built on our Aladdin risk technology platform.

With us, you always have clear sight into
fixed income

We've analyzed thousands of advisor portfolios, helping them uncover hidden risks. Below are some of the most common types of hidden risks we see in client portfolios that could leave investors short of their investing goals.

Equity Risk

Equity Risk

Bonds are behaving too much like equities

Interest Rate Risk

Interest Rate Risk

Unbalanced bond allocations are breeding instability

Yield Risk

Yield Risk

Bond strategy is not generating enough income

We offer strategies well positioned to manage those risks

With our high-performing, low-cost mutual funds and the largest selection of bond ETFs in the U.S.4, we provide a range of strategies to solve for hidden risks.

What role does fixed income play in a portfolio?

Hear from Jeff Rosenberg, BlackRock's Chief Fixed Income Strategist, on how bonds play an important role in managing portfolio risks and can help bring you closer to your goals.

  • View transcript

    Q: What role do bonds play in a portfolio?

    So bonds play many roles in a portfolio depending on investors’ return and investment objectives. We think about a core investment objective of protection or preservation of principal. Bonds often play the predominant role for investors of this kind of objective. Critically, we think about safe bond investing. Investing that incorporates the asset classes of treasury, government and government-related securities where there is limited or no possibility of default risk. These types of bonds, whether they are from government-related on the taxable side or on the tax-exempt side, generally represent the best representation of preservation of principal style of investing for bond investments.

    Another big reason for investors holding bonds in their portfolio is investors whose primary investment objective is income. And in the income category, bonds offer several different areas of opportunity for investors to find income. First area of income opportunities is corporate bonds. Corporate bonds take on a degree of default risk for an added degree of income over and above what investors can get from taking treasury or government default-free risk alone. We can go down the credit quality even further, and as we do so, the tradeoff is higher income levels for a higher degree of credit risk. This means higher degree of principal and price return volatility as well as when credit cycles occur, I higher degree of actual realization of loss.

    Another critical area for bond investors who are achieving more of a growth objective in their portfolio is to look towards bonds for diversification or for ballast. Here, the areas of default-free, or government-related bonds, tend to dominate investor portfolio positions. Positions in treasuries, agencies, even agency mortgage-backed securities, are going to be the types of bond investments that portfolios that are more tilted towards growth are going to benefit from and the main reason why they will benefit is the diversification properties that we expect from bond portfolios. And in environments where the economy is doing weaker, equity markets may be falling, generally we have seen in past periods, bonds tend to do well. And the reason they tend to do well is because in those kinds of environments, it’s expected the Fed to become more accommodative, inflation concerns are declining, and potentially even deflation concerns are rising. All of these things tend to bolster the value of high-quality bonds in a portfolio, making these investments for investors more oriented towards growth and equity exposure, the right kinds of strategies for their fixed income allocations.

Well positioned to identify risk

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