Depending on how the market reacts, they might make out better in the long
run than novelists as the price normalizes and consumers return to paying for
short books at the usual
rates.
In a situation where
short - term interest
rates rise rapidly, the crediting
rate of the stable value fund will lag the rise significantly, leading some to withdraw when the market value of the fund is less than the
book value, leading to a possible
run on the fund.