Meaning INTEREST-ONLY STRIP (IO): A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero
More terms such as Interest-only strip (IO) in Dictionary I.
- Definition Indexed Bond:
- Examples Bond whose payments are linked to an index, e.g., the consumer price index interest-only strip (io) definition.
- Definition Indicated Yield:
- Examples the most recent quarterly rate times four. To determine the yield, divide the annual dividend by the price of the stock. The resulting number is represented as a percentage. See: Dividend yield interest-only strip (io) explain.
- Definition Investment Trust:
- Examples regulated by the Investment Company Act of 1940. These funds have a fixed number of shares that are traded on the secondary markets, like corporate stock. The market price may exceed the net asset interest-only strip (io) what is.
- Definition Infant Industry Argument:
- Examples Argument that industries in the developing and emerging sectors of the economy need protection against international competition in order to establish themselves interest-only strip (io) meaning.
- Definition Interest Rate Risk:
- Examples security's value will change due to a change in interest rates. For example, a bond's price drops as interest rates rise. For a depository institution, also called funding risk: The risk interest-only strip (io) abbreviation.
