The world's biggest fixed-income investors, fed up with yields on benchmark government bonds that pay less than zero percent, say they've found a new haven from turmoil sweeping global markets: corporate debt.

BlackRock Inc., Glenmede Corp. and at least four other firms that collectively manage in excess of $4 trillion are putting more of their money into the bonds of companies, contributing to a record rally. The Bank of America Merrill Lynch Global Broad Market Corporate Index, which tracks 9,542 debentures, is on pace to gain 3.61 percent in July, the most since being created in 1997, and 14 percent for the year including reinvested interest.

"You have rates markets like the U.S., the U.K. and Germany which look incredibly expensive," Ewen Cameron-Watt, the chief investment strategist for a unit of New York-based BlackRock, the world's biggest money manager with $3.56 trillion in assets, said in a July 17 conference call from London. The firm favors "stuff that gives you a real yield," he said.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.