In 2002, the Service released guidance on the application of the coupon stripping
rules to certain fees payable out of mortgage payments received by mortgage pool trusts.
Forget pork bellies, futures and bond coupon stripping
Contrast the need to execute and sometimes record mortgage assignments with coupon stripping
and repackaging of mortgage cash flows, book-entry issuance and transfer of mortgage-backed securities (MBS), and electronic funds transfers for purchases of mortgages.
Given the investment banks' profit from creating zeros via coupon stripping
, one might wonder why the Treasury did not, itself, immediately issue zero-coupon debt (other than nonmarketable Series EE Savings Bonds).
Interest coupon stripping is operational either currently or upon economic justification in 23.
Internal coupon stripping is derived from a technique used by investment banks in 1982 when creating Treasury investment growth receipts (TIGRS) and certificates of accrual on Treasury securites (CATS).
Coupon stripping cannot be carried out effectively unless multiple life products of varying maturities (i.
Insurers with an operational internal coupon stripping process tend to have well-segmented portfolios.
If an insurer implements an internal coupon stripping process, other issues must be managed or planned for but do not preclude the usefulness of the tool.
The only exception is internal coupon stripping, which does require a diversified product line.
excess servicing), the mortgages are "stripped bonds" within the meaning of Code Section 1286(e) (2), the bond coupon stripping