The largest US fixed-income allocators are risk averse and see Europe’s stability as more appealing compared with Asian or emerging markets, the report said.
BlackRock sees European fixed income benefiting from any investor shift away from the US, signaling caution around unpredictable US policy and ballooning government debt.
Foreign investors are stepping back from the US and its “special status” in financial markets could be challenged if the country’s government debt is left unchecked, according to BlackRock’s fixed income outlook.
