Classifying Bedrock / Cash Flow / Hedge — the specific metrics (PLEX)

Short answer: yes — the training does use a metric list, it's just spread across the Portfolio Plan video and the candidate spreadsheet. The buckets aren't decided by "vibe" or by yield — they're decided by how a fund behaves: how much it moves, how it moves relative to the stock market, how reliable the payout is, and whether you can actually hold it without margin drag. Here's the whole list in one place, with the direction each bucket wants.

The three buckets in one line each

Bedrock — stability first. Low drawdown, low correlation, low maintenance. Yield is a bonus, not the goal. Target ~65%.

Cash Flow — the yield engine. You accept higher volatility and some NAV erosion in exchange for high income. Target ~34%.

Hedge — portfolio insurance. Moves opposite the market, asymmetric bets, tiny allocation. Target ~1%.

The metric list — and which direction each bucket wants it

Metric (from the candidate sheet)	What it tells you	Bedrock wants	Cash Flow	Hedge
Correlation to the S&P 500	Does it move with the stock market? (0 = independent, 1 = lockstep)	Low — own clock, not the market's	Can be high (equity-linked OK)	Negative — moves opposite
Standard deviation (volatility)	How violently the price swings around its average	Low (a senior-loan CEF ≈ `4` qualifies)	Higher OK (CLO-equity ≈ `12–18`)	High but asymmetric
Max drawdown	Worst peak-to-trough fall historically	Shallow	Deeper tolerated for yield	n/a (it's the insurance)
Distribution rate (yield)	The headline payout %	Modest — the LAST thing you optimize	High — this is the point	Very high (mostly ROC)
Distribution frequency & reliability	How often it pays and whether the payout holds up	Monthly & steady preferred	High but can be lumpy	Variable
Maintenance / margin requirement	Can your broker hold it cheaply? (high req = unusable)	Low — must be holdable	Low–moderate	Tiny position, less critical
Morningstar stars	Quality sanity-check	A tiebreaker for all three — not the driver
Return-of-capital (ROC) share	Is the "yield" real income or your own money handed back?	Minimal	Some is OK	Mostly ROC

These are the exact columns scored in the Academy's "Bedrock Debt-Based Candidates" sheet: Distribution Rate · Frequency · Correlation to S&P 500 · Standard Deviation · Morningstar Stars · broker Maintenance Requirement.

What matters MOST for each bucket (priority order)

Bucket	Decide in this order →
Bedrock	1. price stability → 2. max drawdown → 3. market correlation → 4. maintenance requirement → 5. then yield
Cash Flow	1. yield → 2. dividend reliability → 3. spread/discount
Hedge	1. negative correlation → 2. asymmetric payoff

The order is the whole point: for Bedrock, yield comes last; for Cash Flow, it comes first. Same fund universe, opposite priorities.

How it works in practice — one real example

The cleanest way to see it: take the same metric and watch it decide the bucket. From the candidate sheet:

VVR (Invesco Senior Income, a senior-loan CEF): correlation ≈ 0.51, std-dev ≈ 4.3 → Bedrock. Low volatility, secured floating-rate loans = stability.
OXLC (Oxford Lane, CLO-equity): correlation ≈ 0.57, std-dev ≈ 18.0 → Cash Flow. Four-times the volatility, so despite the big yield it can't be a stability holding.
ECC (Eagle Point Credit, CLO): the sheet literally notes — "pass as a Bedrock holding due to high std-dev / distribution frequency, OR put it in Cash-Flow assets due to its low correlation / maintenance." A genuine borderline call, decided by the numbers.

So the rule of thumb the metrics produce: low std-dev + low correlation + low maintenance + steady monthly payout → Bedrock. Crank up the volatility or the yield-chasing → it's Cash Flow. Built to move against the market on an asymmetric bet → Hedge.

Quick decision rule

When you're unsure where a holding goes, ask in this order:

Is it built to move opposite the market / is it an asymmetric option-income bet? → Hedge (and keep it tiny).
Is it low-volatility, low-correlation, easy to hold, and you'd own it even if the yield were boring? → Bedrock.
Are you holding it mainly for the big distribution, accepting the swings? → Cash Flow.

If a fund "could" be Bedrock but you only want it for the yield, the priority order settles it: Bedrock screens on stability first, so a yield-motivated pick belongs in Cash Flow.

Key terms — and where each is taught in the Academy

Term	Meaning	Where it's taught (course · session · date)
Bedrock	Stability bucket — low drawdown/correlation/maintenance; yield is the last screen. Target ~65%.	PLEX · Community Call "Bedrock Debt-Based Candidates v2.0" · Apr 16, 2025 (also PLEX tier model)
Cash Flow	The yield engine — accepts volatility & NAV erosion for income. Target ~34%.	PLEX · Call 2 "PLEX Portfolio" · Feb 2, 2026 (PLEX tier model)
Hedge	Tiny asymmetric insurance sleeve that moves opposite the market. Target ~1%.	PLEX · "The Ultimate Hedge Against Inflation" · Sep 2024
Correlation (to the S&P 500)	How closely two things move together: ~0 = independent, ~1 = lockstep, negative = opposite.	PLEX · "Qualifying New Income Sources" (Income-Source Criteria) · May 4, 2022 · scored in "Bedrock Debt-Based Candidates v2.0" · Apr 16, 2025
Standard deviation	A volatility measure — bigger number = wilder price swings.	PLEX · "Qualifying New Income Sources" · May 4, 2022 · column in "Bedrock Debt-Based Candidates v2.0" · Apr 16, 2025
Distribution rate & frequency	The payout % and how often/reliably it pays (monthly & steady preferred).	PLEX · "Qualifying New Income Sources" · May 4, 2022 · candidate sheet, "Bedrock Debt-Based Candidates v2.0" · Apr 16, 2025
Maintenance / margin requirement	How much a broker makes you hold against a position; very high = effectively unusable in the plan.	PLEX · Call 3 "Margin" · Feb 9, 2026 · scored in "Bedrock Debt-Based Candidates v2.0" · Apr 16, 2025
Morningstar stars	A quality sanity-check / tiebreaker, not the driver.	PLEX · candidate-sheet column, "Bedrock Debt-Based Candidates v2.0" · Apr 16, 2025
NAV erosion	A fund's per-share value grinding lower over time even while it pays a high yield.	PLEX · "Income Sources — Advanced: Open-End Funds (Part 2)"
Return of capital (ROC)	A "distribution" that's partly your own money returned — it isn't true income and it erodes NAV.	PLEX · "Income Sources — Advanced: Open-End Funds (Part 2)"
CEF (closed-end fund)	Fixed share count, often leveraged, can trade at a discount/premium to NAV.	PLEX · "Income Sources — Advanced: Open-End Funds (Part 2)"
BDC	Business Development Company — lends to private mid-market businesses; high yield, equity-like risk.	PLEX · "Qualifying New Income Sources" · May 4, 2022 (BDC examples in "Bedrock Candidates v2.0")
CLO / CLO-equity	Collateralized loan obligation; the equity tranche is the riskiest slice — high yield, high volatility → Cash Flow, not Bedrock.	PLEX · "Bedrock Debt-Based Candidates v2.0" · Apr 16, 2025 (CLO candidates: ECC/OXLC/OCCI)

Citations point to the Fynanc PLEX curriculum: the income-source qualification criteria (originally "Qualifying New Income Sources," May 4 2022), the PLEX tier model, and the metric columns in the "Bedrock Debt-Based Candidates v2.0" community call (Apr 16 2025). "0DTE / weekly covered-call" and "YieldMax / single-stock option income" are general market products referenced in PLEX portfolio examples rather than terms coined by the course.

Bottom line for the question: yes, there is a metric list — it's the candidate-sheet columns above (correlation, standard deviation, drawdown, distribution rate & frequency, maintenance, ROC), and the trick is the priority order: Bedrock screens for stability and treats yield as last; Cash Flow leads with yield; Hedge leads with negative correlation. Run any holding down the metric list and the bucket falls out.

Educational summary for the Fynanc community · sourced from the PLEX training: Portfolio Plan module and the "Bedrock Debt-Based Candidates v2.0" community call (Apr 16, 2025) · figures are illustrative reference values from the candidate sheet, not advice · prepared by The Property Joes Group.