- Federal Reserve rate cuts are lowering returns on fixed-income investments like CDs.
- But BlackRock’s Rick Rieder says there are still fixed-income investments trading at a premium to benchmark rates.
- Two examples are AAA collateralized loan obligations and European credit, Rieder told BI.
It’s getting harder for investors to find the kind of robust yields on cash equivalents they could collect earlier this year.
With the Federal Reserve expected to have slashed interest rates by a full percentage point by the end of the year, returns on vehicles like money market funds, certificates of deposit, and short-end Treasurys are dipping.
But there are corners of the fixed-income market where investors can find yields that offer an attractive premium over benchmark rates, according to BlackRock’s CIO of Global Fixed Income Rick Rieder.
Rieder, who oversees $3…
