BlackRock Warns Bonds No Longer Serve as Portfolio Stabilizers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23h ago
0mins
Source: CNBC
- Declining Bond Stability: BlackRock warns that rising debt levels and persistent inflation pressures have diminished bonds' role as stabilizers in portfolios, prompting investors to reassess their risk allocations.
- Increased Market Volatility: Recent fluctuations in global bond markets highlight a structural shift driven by heavier government borrowing and a 'higher-for-longer' interest rate environment, exposing long-duration sovereign debt to greater selloff risks.
- Significant Policy Impacts: Strategists at BlackRock indicate that any spike in long-term bond yields can heighten debt sustainability concerns, which have been closely linked to the moderation of policy extremes over the past year.
- Adjustment in Japanese Bond Strategy: BlackRock has maintained a tactical underweight position in long-term Japanese government bonds since 2023 and in long-dated U.S. Treasurys since December 2025, reflecting the need to adapt to changing global economic conditions.
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Analyst Views on BLK
Wall Street analysts forecast BLK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BLK is 1336 USD with a low forecast of 1218 USD and a high forecast of 1514 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 1121.670
Low
1218
Averages
1336
High
1514
Current: 1121.670
Low
1218
Averages
1336
High
1514
About BLK
BlackRock, Inc. is an investment management company. The Company provides a range of investment management and technology services to institutional and retail clients. Its diverse platform of alpha-seeking active, private markets, index and cash management investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Its product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives, and money market instruments. Its products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds, separate accounts, collective investment funds and other pooled investment vehicles. It also offers technology services, including the investment and risk management technology platform, Aladdin, Aladdin Wealth, eFront, and Cachematrix, as well as advisory services and solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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