What Is a Strip Bond?

A strip bond is a type of fixed income security in which the coupon payments are separated from the principal, or “face value”, of the bond and are sold as separate securities. The principal and interest payments are then made to the holders of the separate securities at maturity. Strip bonds are also known as … Read more

What is a REPO?

A definition of repo is the financial operation that deals with the sale of securities with the agreement to repurchase them after a period of time at a certain price. It is also known as repurchase agreement, Sale and Repurchase Agreement or Repurchase Agreement. Repo operations are usually done with fixed debt securities, especially with … Read more