Sequence of Returns Risk (SRR) is the danger that a market downturn occurs in the critical years immediately before or after you retire. A massive crash during this phase can severely drain a portfolio of 100% equities, forcing you to sell depressed assets to pay for basic living costs.
A Bond Tent mitigates this risk. You temporarily increase your allocation to fixed-income assets (like bonds or cash) starting 3 to 5 years before your retirement date, peaking at 30% to 40% of your portfolio, and then slowly glide back to equities over the next 5 to 10 years.
This structure creates a temporary shield (hence the 'tent' shape of fixed-income allocation over time). If the stock market crashes early in your retirement, you spend down the fixed-income portion, giving your stock assets time to recover without selling them at local bottoms.