Bond Math: Why Advisors Should Consider Duration

JoAnne Bianco, investment strategist at BondBloxx ETFs, puts fixed income allocations into context against the backdrop of a looming interest rate cut.

In this episode of Advisor Upside, Wealth Management Editor Jeff Benjamin talks with fixed income expert JoAnne Bianco of BondBloxx ETFs about how bond duration risks and opportunities come into play as the Federal Reserve moves toward a September interest rate cut.

In addition to the duration primer, Bianco lays out strategies for investors who are still earning above-average returns in money markets and other cash accounts. The time to start moving that money out on the duration curve is now, she said.

In terms of where the Fed is headed from here, Bianco sees a quarter-point cut in September followed by as many as a half-dozen cuts to get the Fed back near its stated 3% target rate, down from the current 5.25% rate.

Note: Starting September 10th, the Advisor Upside podcast will be renamed "Advisor Insider."