BlackRock, Lombard say calls for faster inflation are premature

Taking their chances: A sign for BlackRock Inc hangs above the company’s building in New York. BlackRock is of the opinion that fears of inflation and concerns on Fed policy shifts are premature — Reuters

NEW YORK: Market expectations for a sustained rise in inflation and withdrawal of policy support are misplaced, creating buying opportunities in corporate bonds, according to BlackRock Inc and Lombard Odier.

In an environment where growth is picking up but price gains likely to be transient, Lombard favours longer-dated corporate debt in China and India, said Dhiraj Bajaj, head of Asia credit. BlackRock likes high-yield corporate paper and Chinese securities, according to Neeraj Seth, head of Asian credit in Singapore.