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Author: BruceCM Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8754  
Subject: Re: STRIPs and TINTs Date: 10/3/2012 7:11 PM
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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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