It's time to rethink bonds, according to the BlackRock Investment Institute, which said "the lure of fixed income is strong" right now. The research arm of BlackRock , one of the world's largest asset managers, urged investors to favor investment-grade bonds, short-term government debt and inflation-linked bonds amid recession fears and higher-for-longer inflation. "Higher yields are a gift to investors who have long been starved for income. "Investors also will increasingly ask for more compensation to hold long-term government bonds — or term premium — amid high debt levels, rising supply and rising inflation." The BlackRock Investment Institute has raised its overweight position on investment-grade credit, but remains underweight on long-term government bonds.

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