Navigating New Norms

Matthew Allgood |



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The Bloomberg U.S. Aggregate Bond Index, known for its stability and consistency, has seen an unusual uptick in volatility. Before 2020, the Index only had three negative calendar years since its inception. Recently the frequency of negative returns has increased significantly. In fact, the Index is on track to notch its third negative year in the last FOUR years. This shift has deterred investors, who are now wary of the minimal returns and heightened risk of losses associated with public investment-grade bonds.


Our RiskFirst® approach ensures careful management of exposure to these assets, seeking to optimize their value for our investors. We will continue to monitor risk and navigate this new fixed-income landscape.


Navigating New Norms


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Source: Bloomberg, Redwood. Data as of 4/19/2024. Date Range from 1/1/1977 – 4/19/2024.



Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss.  Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.


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