Blackrock says calls for increased overweight in inflation-linked bonds

(Reuters) – Asset manager Blackrock on Wednesday said that a new regime of greater macroeconomic and market volatility means that investors should demand more compensation for taking the same levels of risk and should increase their strategic allocations in inflation-linked bonds, high yield and investment grade credit.

A week after it released its 2023 global outlook, the Blackrock Investment Institute said in a note that the new regime calls for a larger overweight position in inflation linked bonds, and suggested moves to overweight in developed market high-yield and global investment grade credit, from underweights. It also called for a smaller overweight in developed market equities.

(Reporting by Alden Bentley, Editing by Louise Heavens)