Navigating Today’s Fixed Income Markets in Stable Value
The COVID-19 pandemic of 2020 and the associated halt in economic activity have precipitated a wave of downstream effects that are of particular significance to the stable value asset class. Stable value is a popular principal preservation strategy available to defined contribution (DC) plan participants.
The assets in many stable value portfolios are comprised largely of investment grade fixed income securities, which are paired with insurance contracts known as book value wrap agreements in order to smooth the interest rate over an extended period and provide principal protection to individual participants.
The focus of the webinar will be to review the dynamic shifts that have occurred in the primary investment grade bond sectors, particularly corporate securities; highlight the depth of credit research skills needed to navigate these markets; and discuss the symbiotic relationship between credit and portfolio management leadership to deliver appropriate risk-adjusted yields to meet the stable value asset class’s key objectives:
- Safety of principal;
- Liquidity at book value; and
- Yield designed to exceed capital preservation alternatives.
Can’t attend the live webcast? Go ahead and register and we’ll email you a link to the recorded session when it’s available.