About this episode
Active management can still win in the bond market. Opportunities abound for active managers to best their passive peers and benchmarks. And here’s why: they have access to tools, asset classes, and flexibility that their competition does not. Right now, the bond market is ripe for them to succeed. A deep dive in Morningstar Magazine’s first quarter 2026 issue makes the case why everyday investors should consider adding active bond funds to their portfolio. Eric Jacobson, senior principal of fixed-income strategies for Morningstar, and Maciej Kowara, principal of fixed income strategies for Morningstar, co-authored the article.
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On this episode:
00:00:00 Welcome
00:01:33 Why Active Management Still Works in Bonds
00:02:25 Who Trades in the Bond Market
00:03:18 Finding Inefficiencies in Fixed Income
00:04:26 When Passive Bond Funds Can Hurt Investors
00:06:01 How to Spot a Good Active Bond Fund
00:08:10 What Gives Active Managers an Edge
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