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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8754  
Subject: STRIPs and TINTs Date: 10/2/2012 2:42 PM
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Income oriented investors should be aware of these US Treasury derivatives.

See the new Wiki article on them:

http://wiki.fool.com/STRIPs
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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7548 of 8754
Subject: Re: STRIPs and TINTs Date: 10/3/2012 9:12 AM
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Aware as in this could be dangerous or aware as in this should be taken advantage of?

JLC

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7550 of 8754
Subject: Re: STRIPs and TINTs Date: 10/3/2012 3:08 PM
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Aware that these are available and can fit into some strategies. Charlie over on the Bond & Fixed Incomes board is convinced that with interest rates so low, its a terrible time to buy any fixed income.

The TINTs should be high yield treasury investments. But people say they are very hard to find these days. When people buy STRIPs, the TINTs are easily sold, and not widely offered. Maybe even private placements. Probably very attractive to money market funds, pensions, insurance companies, etc, etc. Individuals rarely get a chance to buy them. But they do exist.

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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: 7552 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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