Strip Bond

Strip Bond

A bond, especially a U.S. Treasury security, that is traded separately from its coupons such that it pays no interest. Strip bonds are sold at a significant discount from par and mature at par. They fluctuate in price, sometimes dramatically, because changes in interest rates make them more or less desirable. They can be placed in IRAs and other pension accounts; however, unlike other Treasury securities, they are subject to federal taxes. Generally speaking, strip securities are quoted according to their yields rather than their prices. In 1985, the U.S. Treasury began issuing its own strip bonds, called STRIPS, which replaced other vehicles, such as CATS and TIGRS, that had been issued by the Treasury and stripped by another party.
References in periodicals archive ?
A strip bond is where an investment firm buys a debt instrument and "strips" it into its separate parts.
But I tried to make the movie as I saw it and I'm really satisfied with it - I wanted to strip Bond down and was inspired by films like The French Connection.
5 million in face value to our strip bond portfolio which now has a face value of US$42.
The Company intends to use these proceeds to augment their diversified investment program in offshore strip bond activities and to launch their new gold backed products known as "Monetas" in the U.
We still don't recommend opening long positions on strip bonds due to high uncertainty concerning some key questions, including situation in Greece and the probability of monetary stimulation by the FRS.
In that position, he managed a group of bond traders with responsibility for strip bonds, agency zeros and long Treasury coupons.
The Finance Ministry plans to issue strip bonds in fiscal 2001 to spur demand for Japanese government bonds (JGBs), ministry officials said Monday.
The ministry intends to submit a bill to enable the issuance of strip bonds to the regular Diet session convening Wednesday, they said.
Strip bonds and interest rate snaps: some of the financial instruments sounded like erotic paraphernalia.
Jian Gao, vice chairman of the China Development Bank, has contributed to the introduction of new debt instruments in the interbank market, such as floating rate notes (FRNs), puttable bonds, callable bonds, strip bonds, 30-year bonds, swaption-embedded bonds, and forward rate bonds.
It has been customized for the Canadian market to handle more than 20 corporate actions related to a variety of debt instruments, including complex instruments like strip bonds.
In addition, the panel proposed that the ministry issue so-called strip bonds to diversify the range of debt issues it offers and to reinvigorate the bond market.