BlackRock’s Rieder Dumps US Credit in Favor of Emerging Markets

BlackRock Inc.’s Rick Rieder said he’s reducing exposure to US investment-grade and high-yield bonds while increasing holdings of emerging-market debt, citing favorable valuations and a soft dollar.

Yield spreads in US credit markets, which are hovering near the lowest in three decades, simply aren’t attractive enough at a time when bond supply is rising, BlackRock’s chief investment officer for global fixed income said in an interview on Bloomberg Television Friday.