With $4.8 trillion in assets - or about the size of Japan’s economy - no one manages more money than BlackRock. So, it’s worth paying attention when the firm says it’s time to cast aside its trusted models for assessing risk in bonds.
In Germany, for example, yields on 10-year securities have surged from almost nothing in late April to about 1% last week -- a move so swift that some strategists are likening it to a once-in-a-generation event.
'The German bond market is incalculably volatile', said Scott Thiel, BlackRock’s deputy chief investment officer for fundamental fixed income in London. 'It doesn’t make sense to measure it in traditional respects'.
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