This is “the best investment environment ever,” says BlackRock’s global bond CIO.

Rick Leader, chief investment officer of BlackRock’s global bonds, said earlier this week that the current background represents “the best investment environment ever,” citing unusually favorable dynamics in both the stock and bond markets.

Speaking about CNBC, the leader explains the “extraordinary” technical terms for the stock, with trillions of dollars still parked in money market funds and responsible for buying back robust companies that will reduce the available supply. Although the market’s biggest technology name rating continues to rise, it noted that non-Tesla revenue growth has helped justify multiples. “The MAG-7’s year-over-year growth is like 54%,” he said, adding that this pace makes it difficult to ignore the sector.

On the bond side, leaders emphasized the appeal of income.

Investors can build a portfolio harvested between 6.5% and 7%. This is the level that I described as being very attractive in a world where inflation fell below 3% on a core basis. He argued that the Federal Reserve could begin in September, but the current yields already provide solid returns for investors.

“Crazy Low” Volatility

The leader also highlighted the unusually calm volatility of today. He explained trading stock volatility (vol) at levels of nearly 9.5-10. Low volatility makes hedges against negative side risk relatively cheap, giving investors what they called “escape hatch” if they have sourness. “In reality, there’s no need to take any downside risk,” the leader said.

Still, the leader warned that self-completion was his biggest concern. With market insurance so cheap, he believes that investors may be underestimating risk, especially in the credit spreads and other bond sections.

Fed interest rates

On monetary policy, leaders argued that the Fed’s interest rate hikes have little to curb inflation given that large companies do not rely on funding for investments.

According to him, the real resistance lies in housing activities and low-income households, which is heavily dependent on trust. He warned that interest rates would be kept high, and that there was a risk of imposing excessive costs on the government and households without the benefits of meaningful dismissals.

He believes the central bank can lower up to 100 basis points over the next year. This is a move I think it’s unlikely to rekindle inflation given the decline in structural volatility and productivity due to advances in data, hyperscale computing, and even space-related technologies.

“There’s something spectacular going on about productivity,” he said.

For crypto investors, leaders’ comments reinforce the broader narrative. An environment with a falling rate, adequate liquidity and low volatility could support a new appetite for risky assets beyond stocks. If his call proves correct, the same technical tailwinds driving the inventory could ripple into digital assets that thrive with excess cash and investor risk taking.