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URL:  http://boards.fool.com/if-the-same-product-strips-used-to-be-called-30298396.aspx

Subject:  Re: STRIPs and TINTs Date:  10/3/2012  7:11 PM
Author:  BruceCM Number:  7552 of 8888

If the same product, 'Strips' used to be called 'Strip-T's', as the treasuries would have their interest payments 'stripped' and would be sold at a discount roughly equal to the present value of the interest stream over the maturity of the bond. The advantage of this approach is that the holder didn't have reinvestment risk, which can be an issue in a market of declining interest rates.

Also, the minimums on these, as I recall, were usually in the hundreds of thousands or millions, so were pretty much for the institutionals.

But at today's interest rates, I'd think hard before investing anything in fixed income...of ANY type.

BruceM
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