BlackRock Investment Institute on Monday said it was moving from "overweight" to "neutral" on credit, saying yields are not enough to compensate investors for tightening credit conditions.

In a research note, it also said it was moving from "underweight" to "neutral" on private markets following recent weakness in the U.S. regional banking industry.

"The fallout from the banking sector troubles and further tightening of credit conditions adds to the pressure on public credit but could be a potential boon for private credit," the investment management company said.

The BlackRock Investment Institute is an arm of U.S.-based investment firm BlackRock that provides proprietary investment research.

(Reporting by Noel Randewich; Editing by Mark Porter and Jonathan Oatis)