BlackRock’s Miller Sees More Stress in Leveraged Markets Post-UK

Central banks tightening means ‘things are going to break’
Sees chance to build high-grade portfolio at ‘reasonable’ cost

Bob Miller, BlackRock Inc.’s head of Americas fundamental fixed income, says despite the recent volatility in bond markets, returns are “starting to look reasonable” for investors in high-quality assets. He speaks on “Bloomberg Surveillance.”Source: Bloomberg

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By John McCorry and Lisa Abramowicz

October 17, 2022 at 6:25 PM UTC

This article is for subscribers only.

The recent tumult in the UK government bond market is likely to be repeated where leveraged strategies are in place, said BlackRock Financial Management Inc.’s Bob Miller.

“When you tighten financial conditions this aggressively, this abruptly, things are going to break,” the firm’s head of Americas fundamental fixed income said on Bloomberg Television’s Surveillance on Monday. “Where do they break first? Almost always, it’s in the levered strategy.”