---
title: "Interest rate backdrop supports playing offense with bonds, according to Goldman Sachs former ETF head"
description: "Tony Kelly, co-founder of BondBloxx and former Goldman Sachs ETF head, discusses the evolving landscape of fixed income investments. With the Federal Reserve's recent interest rate cut to 3.75%-4%, he"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/263859867.md"
published_at: "2025-11-01T15:00:01.000Z"
---

# Interest rate backdrop supports playing offense with bonds, according to Goldman Sachs former ETF head

> Tony Kelly, co-founder of BondBloxx and former Goldman Sachs ETF head, discusses the evolving landscape of fixed income investments. With the Federal Reserve's recent interest rate cut to 3.75%-4%, he believes bonds are becoming more than just safe havens, offering opportunities for active investment. Kelly highlights emerging market debt as a top performer and notes growing interest in private credit ETFs, which provide institutional-style yields with daily liquidity. He emphasizes that advisors are becoming more strategic in their approach to fixed income investments.

Bonds may be more than just a safe haven.

BondBloxx ETFs' Tony Kelly, a former Goldman Sachs Asset Management global ETF head, contends it's where investors can also play offense due to the market backdrop.

"It's definitely getting more nuanced," the firm's co-founder told CNBC's "ETF Edge" this week**. "**Advisors are being a bit more thoughtful because there is more opportunity in fixed income now that rates are no longer… close to zero \[percent\]."

The Federal Reserve cut interest rates on Wednesday by a quarter point — its second move this year. The decision took its benchmark rate down to 3.75%-4%, a level that's still far above zero.

Meanwhile, the benchmark 10-year Treasury Note yield ticked back above 4% following the latest decision. The yield has dropped by almost 2% over the past month and is down about 11% so far this year.

Kelly, whose firm specializes in fixed-income exchange-traded funds, finds bonds are evolving into an active source of diversification, income and tactical opportunity.

Kelly highlights emerging market debt as a standout performer.

"\[It's\] one of the top returning asset classes in the fixed income market this year," he noted.

Kelly finds interest is also growing in private credit ETFs, which allow investors to tap into institutional-style yield with daily liquidity.

"I don't know if that is something you would necessarily refer to as plain vanilla, but there is a lot of interest in that subset of the fixed income asset class to be in an ETF wrapper for clients," said Kelly. "We do have a private credit ETF product in the market now. We've got one in registration."

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.