Has stable value exposure lost its luster in our new falling interest rate environment?
Risk-adjusted returns for TDFs with stable value were higher in 2023 despite bonds ending the year up 5.5%. Matt reviews 2023 results and 2024 outlook!
The consistent goal of stable value is to reduce volatility (in all market environments)
TDFs with stable value had higher-risk adjusted returns in 2023 (despite bonds outperforming stable value with an remarkable 5.5% return)
Enhancements to the underlying bond portfolios including stable value sleeves have been made and will continue to be assessed
Fed rate cuts don’t directly impact bond returns; the market dictates yields/bond returns and has priced in more rate cuts than the Fed expects to make
