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BlackRock Investment Institute said on Monday it was downgrading credit and preferred short-term bonds for income, with strategists pointing to financial cracks from rapid interest rate hikes.

“We stay risk-off: underweight developed market (DM) stocks and trim credit to neutral. But we are ready to seize opportunities as macro damage gets priced in. We overweight very short-term government paper for income and prefer emerging markets,” BlackRock Investment Institute strategists wrote in a weekly note to clients.

BlackRock Investment Institute is an arm of U.S.-based investment firm BlackRock that provides proprietary investment research.

Treasury yields rose on Monday as the takeover of Credit Suisse and central bank steps to shore up liquidity helped allay investor concerns as they gauge whether the Federal Reserve may pause its rate-hike cycle later this week.

Major central banks, faced with the risk of a fast-moving loss of confidence in the stability of the financial system, moved on Sunday to bolster the flow of cash around the world.

BlackRock Investment Institute said it expects the Fed to raise interest rates on Wednesday. Interest rate futures show 73% odds that the U.S. central bank will raise its benchmark overnight interest rate by 25 basis points, with 27% odds of no hike, according to CME Group’s FedWatch tool.

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