BlackRock's Rieder Is Looking to Emerging Markets

Summary

Rick Rieder, BlackRock CIO of Global Fixed Income, discusses a muddy U.S. economic data picture and argues the economy can keep motoring despite a softening jobs market. He outlines fixed-income positioning changes, including reducing credit and high yield, favoring mortgages, emerging market debt and securitization, and shifting toward Asia over Europe. He also expects the dollar to stay contained and says AI/capex dynamics are reshaping corporate moats and equity market technicals.

• Jobs data are unusually hard to read because government shutdowns have delayed or disrupted reports.
• Rieder sees a resilient but uneven U.S. economy driven by capex, wealthier consumers and productivity.
• He has reduced credit and investment-grade exposure because spreads are unattractive.
• He cut low-quality high-yield and is running less high-yield overall.
• He still likes mortgages, though Fed balance-sheet runoff is a consideration.
• He likes EM debt, expects a contained dollar and cites the EM-vs-high-yield yield differential.
• He loves securitization markets and is adding more Asia as Europe's benefit fades.
• AI and capex are changing corporate moats and work/education, but no specific trades were given.