Mary Callahan Erdoes, CEO of JPMorgan Asset Management, is concerned about retail investors continuing to invest in bonds despite the growing risks.
"People who aren't as informed are going into the bond market....they don't understand the effects of duration and convexity and what will happen eventually. That's the most dangerous part of this," Erdoes said at the Delivering Alpha conference presented by CNBC and Institutional Investor Wednesday. "It gives me great pause."
Erdoes said that the mass of money coming into JPMorgan's asset management unit was in fixed income. The positive, she said, is that much of the inflows are into unconstrained bond funds, meaning ones that can attempt to avoid losses from rising interest rates in various types of fixed income securities.