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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: sonofhino who wrote (38143)	8/8/2005 4:07:56 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

I've seen this kind of thing ad nuesuem in these "plans". It's almost as if the financial industry decided to go out and market in the best manner to create a Bubble. Then you end up with all this rather mislabeled and misrepresented hybrid MBS and ABS garbage that the purveyors then declare is "conservative" or are "government securities" or is "stable". Further when you read through the site, as I did with yours, you can never readily determine what these funds actually hold. They say, "For more information on the Stable Value Fund, please contact us or view the Summary Booklet. Well, nothing was in the booklet, and I ain't callin' the salesman. You already know what I think about it.

To: sonofhino who wrote (38143)	8/8/2005 4:24:25 PM
From: KyrosL	Respond to of 110194

In a non-disaster scenario stable value funds are fine. In a disaster scenario, their MBS, ABS, and corporate bond holdings are fully exposed. The wrap agreements protect them from interest rate fluctuations, not credit problems in their bond portfolio. I have some of my retirement assets in a stable value fund but intend to move them to Treasury obligations before year end. I think a disaster scenario probability is well below 50%, but it is no longer negligible, hence my caution.