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Carl Icahn thinks investors are headed over a cliff in a “party bus” driven by BlackRock. He made the comments whilst sat next to Larry Fink on stage at the Delivering Alpha investment conference hosted by CNBC. Icahn accuses the giant money management firm of pumping air into a bubble in high-yield debt, saying “They are putting their name on this stuff and people are buying it,” “Blackrock is an extremely dangerous company.”
Icahn made the comments while sitting next to BlackRock CEO Larry Fink on stage at the Delivering Alpha investment conference, which is put on by CNBC and Institutional Investor magazine. Icahn honed in on BlackRock’s sale of high-yield exchange traded funds. He said the ETFs offer the appearance of liquidity, making the high-yield bond market seem safer than it is. Icahn also noted that BlackRock’s ETFs often get exposure to high-yield bonds through credit default swaps, which he suggested would make the liquidity problem even worse, but he didn’t explain how.
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