BlackRock Global Long/Short Credit Absolute Return Credit
Investment Process Integrates Top-Down Relative Value with Bottom-Up
Fundamental Analysis
Top-Down
Assessment
Determine the
macroeconomic regime
and investment thesis
which serve as the
starting point for our
evaluation of issuer
fundamentals and
credit views
Identify top-down
investment themes
which have the
potential to materially
affect pricing
Inputs: global
macroeconomic data,
central bank policy,
financial conditions,
fundamental, technical
and valuation
considerations across
asset classes
BLACKROCK*
Capital
Allocation
Assess expected
returns and potential
drawdown by global
asset classes
Allocate capital by
region, seeking to
optimize return while
maintaining low
volatility
Leverage traditional,
absolute and hedge
strategies and target
positively asymmetric
upside/downside
Hedge strategies used
to increase asymmetry
of outcomes, manage
tail risks and adjust
market beta
Portfolio Solutions
Bottom-Up
Idea
Generation
Trading
Bottom-up fundamental
and research-led
approach with a focus
on catalysts
●
Research analyst
dialogue with
companies, issuers,
industry professionals,
investors, market
participants
Team discussion on
mispricing, catalysts,
dynamics and timing
Determine relative
attractiveness of credit
and how our view may
differ from consensus
BlackRock Global Resources
●
•
Portfolio
Construction
Daily Performance/Risk Attribution Feedback Loop
PMs work with
research teams to
populate allocations
with individual credit
selection or indices (as
appropriate)
Determine most
efficient expression of
the credit view
Size positions based
on guidelines and
market themes
Risk Management Product Strategy COO
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO THE GENERAL PUBLIC.
Analysis and
Review
Positions and themes
constantly re-
underwritten for
performance and time
horizon
Adjust with new
information, changes in
circumstances and
price movement
Utilize scenario
analysis and stress
testing to understand
impact of changing
market dynamics
Monitor overall risk
levels and liquidity
USR0418U-470515-1498457
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