Bloomberg Talks – BlackRock Fixed Income CIO Rick Rieder Talks State of the Markets
Date: February 6, 2026
Host: Bloomberg
Guest: Rick Rieder, Global CIO of Fixed Income, BlackRock
Episode Overview
In this engaging episode, Bloomberg’s hosts sit down with Rick Rieder, BlackRock's Global CIO of Fixed Income, to dissect the current state of the financial markets amidst irregular economic data due to government shutdowns. The conversation ranges from the challenges in interpreting employment data, to the transformative influence of AI on the labor market and education, to the nuances of portfolio positioning in today’s market. Rieder delivers candid, real-time insights drawing on BlackRock’s massive data footprint and his own experience managing substantial fixed income portfolios.
Key Discussion Points and Insights
1. The Data Dilemma: Navigating Markets Without Regular Jobs Reports
[01:04–02:34]
- Context: Government shutdowns have delayed several key economic reports, including jobs data.
- Rieder’s Take: Markets rely heavily on scheduled data releases, with options volatility often centered around these dates. The absence of official numbers creates uncertainty, but Rieder emphasizes that alternative labor indicators (JOLTS, Challenger job cuts, claims data, ISM) offer a sufficiently clear picture.
- Quote:
“There’s no ambiguity around where we are in the jobs market. We're having a really tough time. We're watching productivity explode higher … but a job market that's really tricky.”
— Rick Rieder [01:39–02:34]
2. The New Economic Engine: Asset-Orientation over Labor
[02:34–04:33]
- Changing Economic Structure: Rieder notes that today’s economy is more service and asset-heavy than labor-heavy compared to 20–30 years ago.
- Consumption and CapEx: Strong capital expenditures (especially from the “Mag 7” tech giants) and consumption by older, wealthier savers propel growth.
- Impact on Monetary Policy: With wealth concentrated among savers who are less sensitive to interest rates, traditional policy tools have diminished impact on growth.
- Notable Analysis:
“You’ve got an economy that's operating incredibly well, but only on a couple or three cylinders today … the economy's more asset oriented than labor oriented.”
— Rick Rieder [03:03–04:33] - This structural shift means the economy continues to “motor along” despite cracks in the jobs market.
3. The AI Disruption: Rewiring the Workforce and Education
[04:33–06:17]
- AI’s Impact on Employment: Rieder discusses how rapid advancements in AI (Anthropic’s new financial/legal tools) will alter traditional job roles, especially entry-level positions.
- Education’s Evolution: Rieder’s personal involvement as chair of a Newark charter school network highlights the importance of evolving curricula to prepare students for “AI-augmented” careers.
- No Precedent:
“This is all new territory … there are so many things we’ve got to think about, about what can AI do that can make the economy more efficient, make people more efficient, and then move people into the zones that are going to be fulfilling going forward. But … there is no roadmap for this.”
— Rick Rieder [05:14–06:17]
4. Building Corporate Moats in the Age of AI
[06:17–07:30]
- CapEx as Defense: For Rieder, capital expenditure (CapEx) and R&D spending are crucial for companies to protect themselves from AI disruption.
- Data Utilization: Companies wielding data effectively are building the biggest moats.
- Market Dynamics: Rampant free cash flows have funded both share buybacks and increased CapEx, reshaping equity market technicals.
5. Portfolio Strategy: Navigating Fixed Income in 2026
[07:30–09:18]
- Dynamic Allocation:
- Reduced exposure to certain credit (investment grade and high yield) due to unattractive spreads and expected supply increases.
- Increased exposure to mortgages, though trimming positions amid less favorable signals.
- Strong preference for emerging market (EM) debt, citing favorable yield differentials relative to high yield.
- Emphasis on securitized markets for their structural advantages (ability to control collateral, covenants, and attachment points).
- Reduced allocation to Europe (after strong returns last year) and increased focus on Asia.
- Quote:
“We've dulled down a little bit of [Europe] and actually more Asia in the portfolio. So yeah, we've been moving around a fair amount to keep it dynamic and where we think the best opportunity is.”
— Rick Rieder [08:00–09:18]
Notable Quotes & Memorable Moments
-
On the jobs-market paradox:
“Productivity explode[s] higher … growth being really good. But a job market, that's really tricky.”
— Rick Rieder [01:39–02:34] -
On the asset-driven economy:
“The economy's more asset oriented than labor oriented.”
— Rick Rieder [03:03–04:33] -
On preparing for AI’s impact:
“There is no roadmap for this.”
— Rick Rieder [05:14–06:17] -
On corporate strategy in the AI age:
“CapEx and R&D spend are the way companies can build their moat. And it's actually data utilization … that is at the core of what is happening.”
— Rick Rieder [06:45–07:30] -
On fixed income positioning:
“A little less credit, a little more ... in the securitization zone ... more Asia in the portfolio.”
— Rick Rieder [08:00–09:18]
Timestamps for Key Segments
- 01:04 — Introducing Rick Rieder; discussing missing jobs data
- 01:39 — Volatility and the effect of missing economic reports
- 03:03 — Structural changes in the economy: CapEx, consumption, and labor
- 04:33 — Impact of AI on jobs and education
- 06:45 — Defending against disruption: CapEx, R&D, and data
- 07:30 — Fund positioning: credit, mortgages, EM, securitizations, Europe/Asia
Summary Tone and Takeaways
Throughout the episode, Rick Rieder offers pragmatic, data-driven insights with characteristic candor, reflecting BlackRock’s global perspective. He acknowledges the unpredictability of markets and the unique moment of transformation in both the labor market and corporate strategies due to AI. For investors and market-watchers, this episode provides both a high-level strategic outlook and granular, actionable ideas for managing portfolios in a complex and quickly evolving environment.