Stable value funds are a creature of their captive market. They try to enhance their yield by extending the duration. If a fund is able to keep attracting new money even when interest rates are rising, they can buy current market rate bonds to up their yield. They might need to keep yields low because interest rates have gone up and the current portfolio was bought at a lower yield. The low yield won't attract new money, keeping yields low. I think the whole scheme is flawed.
Statistics: Posted by bberris — Mon Aug 05, 2024 5:01 pm — Replies 36 — Views 3376