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BlackRock's Larry Fink Tells CNBC He Sees Lack Of 'Good Assets'

BlackRock's Larry Fink Tells CNBC He Sees Lack Of 'Good Assets'

Global equities ended 2018 down by 13 percent and have rebounded around 11 percent, implying that the market environment is different today than it was at the end of last year, BlackRock, Inc. (NYSE: BLK) CEO Larry Fink said on CNBC's "Squawk Box" segment Tuesday after the company reported its first-quarter results.

What Happened

BlackRock ended the first quarter with 9-percent growth in its asset base to above $6.5 trillion, Fink said. Among the capital inflow, $80 billion in new capital was allocated toward fixed-income products, in contrast to global equities that saw a large outflow of capital.

This is consistent with trends that were seen last year, with investors putting money to work but falling short of "jumping all-in," he said. 

Why It's Important

Despite a strong start to 2019, many investors remain underinvested across the world, Fink said. A record amount of cash is sitting on the sidelines, partly due to a "shortage of good assets" for investors to buy, he said.

The CEO said central banks across the world are "more dovish than ever" and aren't changing their behavior in terms of quantitative easing.

What's Next

Many investors assumed 2019 would mark a new era of rising interest rates, but this has not panned out, Fink said. What did occurl he said, is a rush to invest in fixed income — a trend that hasn't spread to equities. 

Related Links: 

BlackRock Fires Latest Shot In Asset Manager Pricing War 

Warren Buffett, Other Kraft Heinz Institutional Investors Left With Mustard On Their Shirts 


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