Rick Rieder reviews Blackrock Bond team as HPS Clout grows

(Bloomberg) -BlackRock Inc. is renovating its massive fixed income division around new investment strategies and artificial intelligence, as the unit’s leverage businesses are moving under an executive team of the new firm’s executive team. The changes are a new vision for the group and reflect the ‘dramatic and transformative’ evolution of the credit market, said Rick Rieder, Blackrock’s head investment officer of global fixed income, said in an internal memo seen by Bloomberg. The move also underlines the growing group of the private financing solution group led by the top executives of HPS-a key business for the firm as it expands in private and alternative credit and competes with the such as Blackstone Inc. and Apollo Global Management Inc. Blackrock’s Lifted Financing Enterprise will be folded under the management of David Delbos and Mitch Garfin. The PFS franchise is supervised by Scott Kapnick, Scot French and Michael Patterson, the HPS leaders who completed the sale of the $ 12 billion private credit specialist in July. A representative for the company declined to comment. This is the latest move in a greasy plan to thread blackrock again. Co-founder and CEO Larry Fink is working on a large part of the future of his business in private markets and its ability to combine it with the public equity and mortgage strategies and ETFs that have done the firm’s increase. Blackrock spent billions to become an important player in alternative and private assets and data, and the HPS purchase turned it into a private credit worthy almost overnight. Rieder, who met with US Treasury Secretary Scott Besent last week about the role of the Federal Reserve Chairman, set out new investment plans for Blackrock’s fixed-income group in the memo. It will build core income portfolios and plan to develop a so-called core-plus-related solution that is ‘more powerful’, he said. As part of the changes, Rieder said Russ Brownback would become deputy cio of global fixed income. David Rogal, meanwhile, has informed the company that he intends to investigate opportunities outside the firm, Rieder said. David Koh, Bank of America Corp. Rieder’s group plans to start a fixed-income hedge fund named Triaxial, he said. It also intends to develop a higher-income version of BINC, a popular Active Bond ETF with $ 12.3 billion in assets running Rieder. According to the firm’s website, he accounts for about $ 2.4 trillion. “Technology will be an important part of the work,” says Rieder. “The ability to use AI, machine learning and new data” will help develop new instruments to improve investment returns. -With help from Laura Noonan and Jeremy Hill. (Add additional context that begins in paragraph six.) More stories like these are available on Bloomberg.com © 2025 Bloomberg LP