Weekly Client Letter – February 12, 2024

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.

At Redwood, 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”

Weekly Client Letter February 12 2024

  • We believe the preservation of capital 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.

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