Synthetic GIC what is it ?
Small 401k from a long ago mega-corp job, has changed the stable value fund. Used to be invested in Guaranteed Investment Contracts spread among over a dozen insurance companies, and banks. , short term paper, etc.
The new fund prospectus says it is 4% cash and 96% " Synthetic GIC's" thru one foreign bank.
I have a rough idea of how " Synthetic CDO'S " work , so what the heck is a Synthetic GIC ?
For lack of a better term - Side bets among financial institutions ?