Math for Stable Value (SV) Separate Accounts
Self-correcting SV crediting rate (CR) formula:
CR = (1 + 0.01*YTM) * (MV/BV)^(1/D) - 1 – F,
where
CR is the SV crediting rate, YTM is the yield-to-maturity of the underlying portfolio, BV is the book value (or contract value), MV is the market value, F is the wrap fee. When rates go up, MV < BV & CR < YTM; when rates go down, MV > BV & CR > YTM.
https://ybbpersonalfinance.proboards.com/thread/451/math-stable-value-separate-accounts
