BlackRock Global Long/Short Credit Absolute Return Credit
A Deep Risk Focus and Sell Discipline Enhance the Investment Process
Risk management is embedded in BlackRock's culture
Dedicated RQA (Risk & Quantitative Analysis) group supports global credit and GLSC specifically
Investment process is enhanced with detailed risk analytics covering market, portfolio and position-level risk analysis
Emphasis on diversification, liquidity and efficient expression of credit views
ā
Negative
information from
proprietary
network
For illustrative purposes only
Credit Risk
Assessing the issuer's ability
to make whole on debt
obligations involves extensive
financial statement analysis
Concentration Risk
Ensuring the portfolio has
successfully maximized
diversification across issuers,
industries and ratings
BLACKROCK*
Sell discipline is an integral part of credit risk analysis - committed to re-underwriting methodology
Publicly-reported
negative
information for
sector or peers
Liquidity Risk
Analysis of changes in
financing costs, liquidation
costs, credit conditions, and
market activity
Primary credit triggers
Interest Rate Risk
Cognisant of neutral duration
profile and potential
implications of changing
interest rates for global credit
markets
Portfolio Benchmarking
Analysis of portfolio risk as
well as beta
versus custom index
Bond
experiences
significant price
movement
Instant first
assessment of
credit trigger by
credit analyst
and PMs
Decision to
ADD, HOLD, or
SELL
Re-underwriting
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO THE GENERAL PUBLIC.
USR0418U-470515-1498457
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