Stripped Mortgage-Backed Securities

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Stripped mortgage-backed securities (SMBS)

Securities that redistribute the cash flows from the underlying generic MBS collateral into the principal and interest components of the MBS to enhance their attractiveness to different groups of investors.

Stripped Mortgage-Backed Security

A mortgage-backed security with a cash flow that derives exclusively from interest payments or principal payments on the underlying mortgages. That is, the underlying asset of a stripped MBS is interest or principal paid on debt securities, rather than both together. Stripped mortgage-backed securities are extremely sensitive to changes in interest rates, allowing investors to choose either an interest strip or a principal strip depending on the expected direction of interest rates.

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Inverse Floater SMBS Stripped Mortgage-Backed Security			Stripped mortgage-backed securities and other similar instruments, such as interest-only or principal-only strips that are not credit enhancements, must be assigned to the 100 percent risk category. Joint final rule--amendment to risk-based capital guidelines, capital ... by Federal Reserve Bulletin In addition, this policy also discussed several types of instruments, such as stripped mortgage-backed securities and residual interests in pools of securitized assets, with very volatile prices and high-risk characteristics due to extreme sensitivity to interest rate risk. Statement of Franklin D. Dreyer, Senior Vice President, Supervision ... by Federal Reserve Bulletin			Street-Side Trade Strength Stress Test Stress Testing Stretch IRA strict liability Strike Strike Ballot Strike Benefits Strike Clause Strike Index Strike Insurance Strike Notice Strike Pay Strike Price Strike Spread Strike Vote Strikes, Riots, and Civil Commotions Striking Price Striking Price Intercal Strip Strip Bond strip center Strip mortgage participation certificate Stripped Bond Stripped Mortgage-Backed Securities Stripped Mortgage-Backed Security Stripped yield Stripper Stripping STRIPS Strong Currency Strong Dollar Strong Dollar Policy Strong Form Strong Form of the EMT Strong Hands Strong Sell Strong v. Repide Strong-Form Efficiency Structural Adjustment Structural Adjustment Loan Facility Structural Funds Structural Inflation structural inspection structural insulated panels Structural Unemployment structure Structure de placement Structured arbitrage transaction Structured Asset Trust Unit Repackagings			strippable strippable strippable stripped stripped stripped stripped stripped stripped Stripped Arbitrary Separators stripped atom Stripped bond Stripped Bonds stripped chin stripped chin stripped chin Stripped Coupon Stripped Coupon Stripped Coupon Stripped Coupon Stripped Coupons Stripped Coupons Stripped Coupons Stripped Coupons Stripped Down Alien Rock Stripped Fetal Bovine Serum stripped illite stripped joint Stripped Mortgage Backed Securities Stripped Mortgage Backed Security Stripped Mortgage-Backed Securities Stripped Mortgage-Backed Security stripped pad stripped pad stripped pad stripped pad stripped pad stripped pine stripped plain stripped structural surface stripped surface Stripped yield stripped-down stripper stripper stripper stripper Stripper Gatherer stripper plate stripper punch stripper rubber Stripper Thresher stripper well stripper well Strippers Strippers Strippers Strippers Strippet stripping stripping

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