Stable Value

Cash Flows and Put Queues

Impacts may be positive or negative depending on market conditions.

Like other stable value managers, we often get questions about cash flows and how they may impact stable value funds. In general, positive cash flows are good for a stable value fund, not only from a crediting rate perspective, but also in terms of the market‑to‑book‑value ratio. Negative cash flows, however, can be both positive and negative for stable value funds.

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Important Information

This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action.

The views contained herein are those of the authors as of December 2020 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.

This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types, advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision.

Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy.

Past performance is not a reliable indicator of future performance. All investments are subject to market risk, including the possible loss of principal. All charts and tables are shown for illustrative purposes only.

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