BlackRock highlights bonds with yields and lower AI exposure

BlackRock says some bonds still offer solid income and may be less exposed to artificial intelligencerelated disruption, according to its spring outlook. The firm points to fixedincome assets tied to the real economy, especially securitized debt, as markets face volatility, inflation concerns and geopolitical risk. Gargi Chaudhuri, BlackRock’s chief investment and portfolio strategist for the Americas, said the firm sees value in socalled HALO assets, or heavy assets with low obsolescence. These include commercial mortgagebacked securities, residential mortgagebacked securities and some assetbacked securities, which can be backed by loans such as mortgages or auto debt. BlackRock said it is focusing on shorterduration bonds, mainly in the front end to the middle of the yield curve, with maturities of about zero to five or six years. Chaudhuri said the appeal is not just the potential insulation from AI disruption, but also the income these securities can add to a portfolio in a volatile market.