U.S. to Avert Default and Downgrade, BlackRock’s Rieder Says

The U.S. government won’t default on its debt nor suffer any credit-rating downgrade as occurred in 2011, according to Rick Rieder, chief investment officer of fundamental fixed income at BlackRock Inc.

“We are never going to go down the road, no matter what it takes, of default,” Rieder, who oversees $650 billion at the world’s biggest asset manager in New York, said on Bloomberg Television’s “Market Makers” with Stephanie Ruhle and Erik Schatzker. Among politicians in Washington “there is clearly a concern about what the implications would be. My sense is that politicians know you can’t get to that place.”