Investors Unprepared for Bond Danger, BlackRock’s Rosenberg Says

Investors are “putting a back-up generator in the basement of a flood-prone area” by piling into longer-dated fixed-income securities with yields at about record lows, according to BlackRock Inc.’s Jeffrey Rosenberg.

Investors that have fled stocks after the biggest financial crisis since the Great Depression “have been flocking to fixed income, and that’s worked, but interest rates are at historic low levels and so there’s a lot more danger in areas of the market where they think there’s a lot of safety,” Rosenberg, the chief investment strategist for fixed income at the world’s biggest asset manager, said in a Bloomberg Television interview with Betty Liu.