Carl Icahn Blames BlackRock For Bond Market Volatility

(RTTNews) - Activist investor Carl Icahn Wednesday blamed publicly owned investment manager BlackRock Inc. (BLK) for bond market volatility, saying the company creates an "extremely dangerous situation" by encouraging debt issuance.

Icahn was debating the merits of activist investing with BlackRock CEO Larry Fink at the Delivering Alpha conference.

He expressed his fears about a bubble in high-yield bonds. "They sell liquidity. There is no liquidity. That's what's going to blow this up," Icahn said.

Meanwhile, Fink defended exchange-traded funds, saying they create more transparency.

Earlier in the day, Fink's asset manager reported increased second-quarter profit, along with a rise in revenues. Both earnings and revenues topped Wall Street estimates. The firm's Assets Under Management at the end of the period rose 3 percent from last year.