Investing Insights

Why Bond Funds Benefit from Active Management


Listen Later

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.

Subscribe to Morningstar Magazine to read independent investment research for free.

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

 

Watch more from Morningstar:

These Top Tech Stocks Can Stand Up to AI Risks

2 Cautionary Tales from Private Equity and Private Credit Markets

Are You Ready for Tax Day? Here’s What You Need to Know Before You File

 

Follow Morningstar on social:

Facebook https://www.facebook.com/MorningstarInc/

X https://x.com/MorningstarInc

Instagram https://www.instagram.com/morningstarinc/?hl=en

LinkedIn https://www.linkedin.com/company/morningstar/posts/?feedView=all


Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

...more
View all episodesView all episodes
Download on the App Store

Investing InsightsBy Morningstar

  • 4.2
  • 4.2
  • 4.2
  • 4.2
  • 4.2

4.2

499 ratings


More shows like Investing Insights

View all
Motley Fool Money by The Motley Fool

Motley Fool Money

3,228 Listeners

WSJ Your Money Briefing by The Wall Street Journal

WSJ Your Money Briefing

1,713 Listeners

Rule Breaker Investing by The Motley Fool

Rule Breaker Investing

938 Listeners

Zacks Market Edge by Zacks Investment Research

Zacks Market Edge

298 Listeners

Wall Street Breakfast by Seeking Alpha

Wall Street Breakfast

1,044 Listeners

Schwab Market Update Audio by Charles Schwab

Schwab Market Update Audio

356 Listeners

Bogleheads On Investing Podcast by bogleheads

Bogleheads On Investing Podcast

616 Listeners

The Long View by Morningstar

The Long View

934 Listeners

Sound Investing by Paul Merriman

Sound Investing

348 Listeners

Thoughts on the Market by Morgan Stanley

Thoughts on the Market

1,320 Listeners

Simple, but Not Easy by Morningstar

Simple, but Not Easy

83 Listeners

Barron's Streetwise by Barron's

Barron's Streetwise

1,573 Listeners

Barron's Live by Barron's Live

Barron's Live

212 Listeners

Investing Experts by Seeking Alpha

Investing Experts

73 Listeners

On Investing by Charles Schwab

On Investing

334 Listeners

Big Picture In Practice by Morningstar, Ben Johnson, Julie Willoughby

Big Picture In Practice

13 Listeners

The Morning Filter by Morningstar

The Morning Filter

47 Listeners