Redefining "Core Bonds"

Matthew Allgood |



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  • Investment-Grade Aggregate Bonds are still fighting to find their footing in the recovery process. They're hitting a wall that's stopping them from bouncing back completely. This obstacle is dragging out their slump, setting records with each passing day, now at 1,280 days.


  • For years, these bonds have been a staple in the "core bond" portfolios of investors, but if they keep dropping the ball on their role as a reliable source of income, it might be time to rethink our strategy.


  • Our unwavering commitment centers on risk management and the pursuit of innovative solutions, even those that challenge conventional wisdom, with the aim of steering our clients toward success.


Redefining “Core Bonds”

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Source: Bloomberg, Redwood. Data as of 2/8/2024. Date Range from 8/4/2020 - 2/7/2024.


  • We believe capital preservation is key to consistent, long-term investment success.
  • Our investment approach is grounded in economic theory and backed by quantitative analysis.
  • Managing drawdown risk is a pillar from which we build our portfolios.



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.


Index: Aggregate Bonds are represented by the Bloomberg U.S. Aggregate Bond index which measured the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency).


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