The stable value pool goes out and purchases derivatives known as wrap agreements in order to allow the bonds to be held at book value. (alephblog.com)
As a result, they began buying AAA assets in the structured product markets, and purchase wrap agreements that allowed those assets to be carried at book value rather than market value. (alephblog.com)
The thing is, a lot of things can be hidden by the various wrap agreements that stable value funds employ. (alephblog.com)