Negative
Seeking Alpha
1 month ago
JBND: Active Management Cannot Fix Structural Risk
JPMorgan Active Bond ETF combines duration exposure, tight credit spreads, and negative convexity, creating a portfolio where risks are aligned to the downside rather than diversified. Carry no longer provides sufficient protection, while limited spread compression leaves little upside compared to potential widening in a stress scenario. Active management introduces dependency on timing, as the manager must correctly navigate multiple risks that are deteriorating simultaneously.