Q 2024 Investment Review

Not surprisingly, the Bond Market gave back some of its blistering performance from late last year. Federal Funds rate cut expectations got ahead of reality as inflation remained above the Federal Reserve’s comfort level, thus pushing yields higher over the quarter.

The Bloomberg Aggregate Index lost almost 1% in the quarter, led lower by longer duration securities such as 10+ yr. holdings were down 2.44%. Treasuries and Agency MBS were the laggards, as credit performed relatively well. Corporate bonds within the index were down 0.40%; however, ABS and CMBS index names bucked the trend and finished up 0.68% and 0.85%, respectively. The Bloomberg Intermediate Govt./Credit Index ended down 0.15%, but the short duration Bloomberg 1-3yr. Govt./Credit Index finished up 0.42%.