So this still continues because it's seen as short run volatility where the cost of rebalancing and trading out is higher than the expected loss? Or is it seen

So this still continues because it's seen as short run volatility where the cost of rebalancing and trading out is higher than the expected loss? Or is it seen as a stability measure that protects investments in other asset classes? Or are a lot of investors/managers just asleep at the switch (organizational lagress, internal politics, laziness). Or is it simply market inefficiency? It is difficult to wrap my head around why price discovery is totally failing here...