Iran Conflict Triggers Broad Asset De-risking, BlackRock Most Defensive—Bank of America

LootboxPhobia · 2026-03-16T18:55:10+00:00

Bank of America analysts point out that Iran conflict has intensified market volatility, affecting capital flows to stocks, high-yield loans, and alternative investments. Traditional asset management companies are expected to face a negative environment. Money market inflows have turned positive, while equity inflows have turned negative. Energy and defense-related national stocks are outperforming net importing countries. BlackRock is rated as a buy.

LootboxPhobia

2026-03-16 18:55:10

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Investing.com—U.S. bank analysts say that the Iran conflict is driving increased market volatility, including rising energy prices, which is expected to weaken the flow of funds into stocks, high-yield loans, and alternative investments in March and April.

The bank states that this trend, combined with outflows during tax season and reduced inflows into 401(k) accounts in January and February, has created a negative near-term environment for traditional asset management firms.

According to analysis, net inflows into active stocks improved last month, passive stocks remained stable, and money market inflows turned positive, while bond fund inflows slightly decreased.

Early March data shows that money market and fixed income inflows have remained positive since the beginning of the month, while stock inflows turned negative. U.S. bank indicates this is a typical capital flow pattern during geopolitical conflicts, which can drive the VIX higher, widen credit spreads, and lead to stock market pullbacks.

Geographically, stock markets in net oil and natural gas exporters less affected by the Strait of Hormuz closure outperformed those in net importers. The bank cites Canada, Brazil, Norway, and the U.S. as examples, along with energy, defense, and metals & mining sector funds.

In terms of asset management companies, U.S. bank observed that AllianceBernstein, Amundi, BlackRock, Cohen & Steers, DWS, Federated Hermes, Invesco, Janus Henderson, Jupiter Asset Management, Lazard, Morgan Stanley, PIMCO, Prudential, Charles Schwab, Schroders, Vanguard, and Westwood experienced positive or improved net flows, mainly due to their fixed income, passive stock, ETF, and money market fund businesses.

U.S. bank has a buy rating on BlackRock, noting its strong performance during other volatile periods. The bank also has a buy rating on Affiliated Managers Group.

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