STRIPS (Separate Trading of Registered Interest and Principal Securities)

What is STRIPS (Separate Trading of Registered Interest and Principal Securities)?

STRIPS (Separate Trading of Registered Interest and Principal Securities) meaning A book-entry system operated by the Federal Reserve permitting separate trading and ownership of the principal and coupon portions of selected Treasury securities. It allows the creation of zero coupon Treasury securities from designated whole bonds.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary