Credit, Oil, and AI | Playing Offense with JoAnne Bianco

In this episode of the Market Misbehavior podcast, Dave sits down with JoAnne Bianco, Senior Investment Strategist at BondBlox. Recorded July 28th 2026.

JoAnne shares her deep fixed-income expertise to help investors navigate the current credit environment, detailing why resilient corporate earnings and low default rates continue to support a "sweet spot" in BBB to single-B debt. The conversation explores the hidden risks of circular financing in the AI infrastructure buildout (drawing stark parallels to the early 2000s telecom bubble), the rising accessibility of middle-market private credit for everyday investors, and why elevated yields have transformed bonds from defensive portfolio insurance into a truly offensive asset class. They also discuss redefining the classic 60/40 portfolio and why focusing on income over duration is the ultimate key to managing interest rate volatility.

If you enjoyed today's interview with JoAnne, please check out Bondbloxx ETFs! 
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📈 Topics Covered
• Why corporate credit conditions remain structurally strong with low default and distress rates across the BBB to single-B "sweet spot"
• Drawing historical parallels between the early 2000s telecom overbuild and today's "circular financing" in AI infrastructure CapEx
• Shifting fixed income from defense to offense: How elevated yields and coupon income are driving total returns
• Rethinking the traditional 60/40 portfolio in an era of historically high equity P/E ratios and concentrated stock market leadership
• The mechanics and benefits of private credit: Accessing middle-market CLOs, floating-rate assets, and lower-volatility yields
• Why chasing long-duration US Treasuries poses a massive, underappreciated risk to investors in the current interest rate regime
• Implementing a "Core and Explore" bond strategy: Enhancing a standard aggregate base with active bets in BB corporates and short-duration emerging markets
• Identifying the ultimate red flags in the credit markets, including debt-financed M&A and concentrated speculative issuance

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The content in this presentation should not be considered as a recommendation to buy or sell any security. All information is intended for educational purposes only and in no way should be considered as investment advice.