Rick Rieder, the CIO of BlackRock's fixed income division has expressed worries in an interview with Bloomberg TV saying that the Fed's current policies were...

Zero Hedge Watch

Zero Hedge

Rick Rieder, the CIO of BlackRock's fixed income division has expressed worries in an interview with Bloomberg TV saying that the Fed's current policies were distorting the market. He said QE's too big. You've got to taper down QE. It's created this tremendous distortion in interest rates. This was leading to a mispricing of equities making them look cheap at the moment. However, he said people don't spend any time looking at cash-flow discounted by cost of financing, which is really where we think equity should be valued. Therefore, a spike in financing costs could weigh on stocks, which is a distinct possibility in this unusual environment where fixed income markets have actually recorded even higher volatility than equity markets. (VIEW LINK)


3 topics

Zero Hedge Watch
Zero Hedge Watch
Publisher
Zero Hedge

The Zero Hedge Watch feed provides a summary and link to a selection of articles from the Zero Hedge website

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.