Treasury Risk Management Committee and Treasury STRIPS: Difference between pages
imported>Doug Williamson (Create page: Source The Group Treasurer: an ACT Guide to the first 100 days, page 19.) |
imported>Doug Williamson (Create page. Sources: Linked pages.) |
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Separate Trading of Registered Interest and Principal of Securities of US treasury instruments. | |||
( | Certain US treasury notes and bonds issued since 1984 are eligible for the “separate trading of registered interest and principal of securities” (STRIPS) programme. | ||
STRIPS are sold at a deep discount from their face value, representing interest income that will be received at maturity. | |||
Their high yield, liquidity, safety and the wide range of maturities make STRIPS attractive to many investment strategies. | |||
As is true of all zero-coupon securities, the market price of STRIPS can be more sensitive to interest rate changes than interest-bearing instruments of a similar maturity. | |||
Interest income on STRIPS is subject to federal income taxes on an actual basis. | |||
==See also== | ==See also== | ||
* [[ | *[[Bond]] | ||
* [[ | *[[Coupon strip]] | ||
* [[ | *[[Discount]] | ||
* [[Treasury | *[[Face value]] | ||
*[[Interest]] | |||
*[[Federal]] | |||
*[[Income Tax]] | |||
*[[Liquidity]] | |||
*[[Market price]] | |||
*[[Notes]] | |||
*[[Principal]] | |||
*[[Security]] | |||
*[[TIPS]] | |||
*[[Treasury ]] | |||
*[[United States]] | |||
*[[Yield]] | |||
*[[Zero coupon]] | |||
[[Category: | [[Category:The_business_context]] | ||
[[Category: | [[Category:Cash_management]] | ||
[[Category: | [[Category:Financial_products_and_markets]] | ||
[[Category:Liquidity_management]] | |||
Latest revision as of 07:52, 1 June 2023
Separate Trading of Registered Interest and Principal of Securities of US treasury instruments.
Certain US treasury notes and bonds issued since 1984 are eligible for the “separate trading of registered interest and principal of securities” (STRIPS) programme.
STRIPS are sold at a deep discount from their face value, representing interest income that will be received at maturity.
Their high yield, liquidity, safety and the wide range of maturities make STRIPS attractive to many investment strategies.
As is true of all zero-coupon securities, the market price of STRIPS can be more sensitive to interest rate changes than interest-bearing instruments of a similar maturity.
Interest income on STRIPS is subject to federal income taxes on an actual basis.
