Investors Flocked to Bonds in 2022, and BlackRock Was a Big Winner

Investors Flocked to Bonds in 2022, and BlackRock Was a Big Winner

Stocks had a rough time in 2022, but one asset class that Wall Street piled into was bonds. As inflation hit 40-year highs, the Federal Reserve aggressively raised interest

Stocks had a rough time in 2022, but one asset class that Wall Street piled into was bonds. As inflation hit 40-year highs, the Federal Reserve aggressively raised interest

rates at the fastest pace in decades. This has made bonds more attractive than they've been in years, and many investors piled into investments with BlackRock (NYSE: BLK).

rates at the fastest pace in decades. This has made bonds more attractive than they've been in years, and many investors piled into investments with BlackRock (NYSE: BLK).

BlackRock has built up a vast array of investment choices, making it easy for investors to target particular assets in a challenging market environment. Here's why BlackRock has

BlackRock has built up a vast array of investment choices, making it easy for investors to target particular assets in a challenging market environment. Here's why BlackRock has

become the go-to investment manager in the bear market. Rising interest rates have revived fixed-income investments Interest rates surged in 2022, reaching levels we

become the go-to investment manager in the bear market. Rising interest rates have revived fixed-income investments Interest rates surged in 2022, reaching levels we

haven't seen in roughly 15 years. These higher interest rates have attracted investors to fixed-income products, which broadly refer to investments that pay a fixed rate until

haven't seen in roughly 15 years. These higher interest rates have attracted investors to fixed-income products, which broadly refer to investments that pay a fixed rate until

maturity. The most common types of fixed-income products include government bonds, corporate bonds, and municipal bonds.  Institutions seeking fixed-income investments

maturity. The most common types of fixed-income products include government bonds, corporate bonds, and municipal bonds.  Institutions seeking fixed-income investments

include banks, insurance companies, pension funds, and endowments. These institutions like fixed-income investments because they carry less risk and lower volatility, making

include banks, insurance companies, pension funds, and endowments. These institutions like fixed-income investments because they carry less risk and lower volatility, making

future cash flows more predictable. Other investors that benefit from fixed-income investments are retirees, income investors, and others with a low risk tolerance. The

future cash flows more predictable. Other investors that benefit from fixed-income investments are retirees, income investors, and others with a low risk tolerance. The

problem with fixed-income investments in recent years is that they haven't had very good yields. Before last year, the U.S. had been in an ultra-low interest rate environment

problem with fixed-income investments in recent years is that they haven't had very good yields. Before last year, the U.S. had been in an ultra-low interest rate environment

since the Great Recession from 2007 to 2009.

since the Great Recession from 2007 to 2009.