BLK - Larry Fink Sees 'Barbell Effect' As Fixed-Income Investors Shift From Traditional Bonds To ETFs And Alternative Assets | Benzinga
The world’s largest asset manager, BlackRock Inc. (NYSE:BLK), has noted a significant shift in fixed-income markets. Investors are increasingly favoring low-cost exchange-traded funds (ETFs) and alternative assets over traditional bond funds, creating a “barbell effect,” according to CEO Larry Fink.
What Happened: Fink discussed the trend during the announcement of BlackRock’s new high of $10.6 trillion in assets under management. He pointed out the record inflows into BlackRock’s ETF products and a surge in client interest in infrastructure products that invest in energy and data centers, the Financial Times reported on Tuesday.
“Assets are in motion,” Fink stated, as investors with large cash reserves anticipate a U.S. rate cut as early as September and acknowledge missing a significant equity rally ...