From CNBC · Michelle Fox · · 1m 10s
Rick Rieder Sees Historic Bond Opportunity
BlackRock's Rick Rieder spots historic yields in high-quality bonds.
In brief
BlackRock's Rick Rieder spots historic yields in high-quality bonds. BlackRock's Rick Rieder identifies historic opportunity for investors to earn over 7% in high-quality bonds with low default risk. Originally reported by CNBC.
Rick Rieder's Bond Outlook
Rick Rieder, BlackRock's chief investment officer for global fixed income, sees historic opportunity in investment-grade bonds.
“Not only is it historic in that these yields are where they are, but the only time these yields are ever here is when there's some problem, like an economic problem or default problem”
Yield Target for Investors
Rieder suggests investors can build a diversified portfolio yielding over 7% with less than three years of duration and average credit quality of A-.
Hyperscaler Bond Surge
Alphabet, Amazon, Meta Platforms, and Oracle issued $228.4 billion in bonds year to date as of October 20, 2026, according to LSEG.
Rieder's ETF Strategy
Rieder increased iShares Flexible Income Active ETF's investment-grade allocation from 8.5% to 14.3% in July 2026.
AI Infrastructure Risks
Rieder warns about data center supply risks outside hyperscalers and potential crowding-out effects from AI-driven bond issuance.
Federal Reserve Watch
Rieder expects Fed to raise rates in December but disagrees with the market's near 90% probability of a rate hike.
Investor Caution Needed
Rieder advises patience as rates could rise, emphasizing longer holding periods for better yield outcomes.
In short
BlackRock's Rick Rieder identifies historic opportunity for investors to earn over 7% in high-quality bonds with low default risk.
