BlackRock Investor Day Presentation Deck
and as opposed to the past 10 years, returns come with dispersion and volatility making
active management of these yields a valuable part of a total Fixed Income allocation...
●●●
The range of yields available across major Fixed Income asset classes has more than doubled in the last 18 months alone¹
Fixed Income Yields: May 2023
Yield (%)
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Constituents
Japan Agg
900
800
700
600
500
400
300
200
100
0
11
European Agg
797
Global Agg
≤ 300
TH
US Treasury
219
US Agency
(300, 350]
BlackRock
US MBS
US Aggregate
171
The HY Index, with 2011 members, is an incredible illustration of how an index
average cannot fully describe the dispersion (and opportunity) within¹
US Securitized
128
AAA CMBS
97
(400, 450]
(350, 400]
|||
US Credit
84
1-3Y IG
HY Index Constituents by Spread Bucket
Half the index trades below 300 or above 800...
...while the index trades at 460bps (along with 5%
of the constituents)
US Long Corp
US CMBS Aggregate
73
US Corp BBB
69
(500, 550]
(600, 650]
(450, 500]
(550, 600]
US Corp BB
Global Emerging...
42
36
(700, 750]
(650, 700]
US HY
25
(750, 800]
Yield (%)
270
> 800
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Japan Agg
European Agg
1-3Y IG
Return (%)
30%
25%
20%
15%
10%
US Agency
5%
0%
-5%
-10%
-15%
US Treasury
Fixed Income Yields: Dec 2021
Global Agg
2015
US Aggregate
AAA CMBS
US CMBS Aggregate
2016
US Securitized
2017
US MBS
2018
US Credit
Across 10 major global Fixed Income asset classes, owning the best returning asset and selling
the worst has created increasingly large alpha - in 2019, there was virtually no differentiation!¹
Return: Long Best less Short Worst Asset
US Corp BBB
2019
US Long Corp
US Corp BB
II
Global Emerging...
2020
2021
US HY
■US Agg Return
2022
bps
Note: For footnoted information, refer to slide 87. Index definitions are found on slide 88. Index returns are shown for illustrative purposes only. It is not possible to invest directly in an index. Forecasts are based on estimates and assumptions. There
is no guarantee that they will be achieved. Past performance is not indicative of future results.
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