I read that a stable-value fund that Invesco manages for Lehman Brothers' 401(k) plan lost money. How safe are other stable-value funds?
It’s true that an Invesco fund is the first stable-value fund ever to lose money. But the fund's 1.7% decline in December 2008 is peculiar to the situation at the now-bankrupt Lehman, and it probably doesn't portend wider troubles in stable-value funds, which hold more than $400 billion, almost entirely in retirement accounts.
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