Money management giant BlackRock’s quarterly profit rose 21% as investors leaned on bond funds to make new bets in volatile markets roiled by the coronavirus pandemic.
A quarter ago, asset managers came under acute pressure as markets sold off. But after the Federal Reserve rushed in to stabilise markets, many investment firms reaped the benefits of the Fed’s intervention in the second quarter. Higher asset prices translate to bigger revenues for managers like BlackRock as they take a cut of fees on money they oversee for investors.
