stripping


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Stripping

The act or practice of removing the coupons from a bond, especially a U.S. Treasury security, and trading the bond separately such that it pays no interest. Stripped 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 invested in IRAs and other pension accounts; however, unlike other Treasury securities, they are subject to federal taxes. Generally speaking, stripped securities are quoted according to their yields, rather than their prices. In 1985, the U.S. Treasury began issuing its own stripped securities, called STRIPS, which replaced other vehicles, such as CATS and TIGRS, that had been issued by the Treasury and stripped by another party.

stripping

References in periodicals archive ?
According to BSI, their local representative in Pakistan, this is the only pollution free machine for stripping screens.
* Pompano, mackerel and other speedy fish: Fast, erratic stripping can seal the deal.
Toshiba, Shibaura and Chlorine have already developed a single-wafer resist stripping system that will be integrated into the resist stripping process at Toshiba's Yokkaichi plant in April Shibaura and Chlorine plan to sell the current resist stripping system as well as the new electrolyzed sulfuric system.
Robert Aderholdt (R-Ala.) advocated court stripping as a means to protect state-sponsored Ten Commandments displays, such as the one erected by former Alabama Supreme Court Chief Justice Roy Moore in Montgomery.
"We now have to link these observations of ram-pressure stripping from the past ...
Gardiner said the fact that the commercial is a mainstream radio ad demonstrates the acceptance of stripping as a woman's way out of poverty.
A mixer operator should never have to wait for the binder to set at mold stripping. The "18F rule" states that the chemical reaction either doubles or is cut in half for every 18F (10C) change in sand temperature.
Transactions such as this are referred to as "lease strips" or "stripping transactions." These stripping transactions often provide for the transfer of tax benefits from exempt entities to taxpayers in a position to exploit them.
subsidiaries wholly owned by a foreign corporation would not appear to be members of an affiliated group, and thus require the earnings stripping rules to be applied on a separate company basis.
This article will explore two of these provisions: (1) the amplification of the so-called earnings stripping rules of Sec.
But the Omnibus Budget Reconciliation Act of 1989 brought with it the so-called "earnings stripping provisions" of Sec.