Risk to Economy is After Fed Easing Ends: BlackRock Exec

The risk right now to the economy is how will the US move from both fiscal and monetary stimulus to real growth, Jim Keenan, head of leveraged finance at BlackRock , told CNBC Thursday.

"What you're not really seeing is growth capex. People are not borrowing money to go out and actually spend on infrastructure,' he added. "We're a little bit at a crosswords ... as we come off of QE2 [quantitative easing]."

The latest Fed strategy, known as QE2, committed in November to purchase $600 billion more in government bonds to give the economy a boost. This is set to expire on June 30.

"When quantitative two ends you're really talking about 100 billion dollars of debt every month that the Fed is buying—that's going to drop down to about 20. So the investor base is going to have to make up that deficit spending," Keenan explained.

Some investors, as inflation expectations start to drop or growth expectations drop, will "actually supplement and be that buying base," he added.

For that reason high yield actually positions very well right now, Keenan said. "The biggest reason is what's going to drive spreads to move or what's going to drive rate markets to move? If you go back in to December the rate markets moved because quantitative easing two was working and the expectations of growth were increasing, so the rate market backed up."

"High yield has performed incredibly well. Most funds are up over 5 percent this year," he concluded.

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