strip bond การใช้

• Strip bonds are normally available from investment dealers maturing at terms up to 30 years.
• A strip bond has no reinvestment risk because the payment to the investor occurs only at maturity.
• In most countries, strip bonds are primarily administered by a central bank or central securities depository.
• Dealers normally purchase a block of high-quality and non-callable bonds often government issues to create strip bonds.
• The impact of interest rate fluctuations on strip bonds, known as the bond duration, is higher than for a coupon bond.
• Traders often strip bonds, removing the interest coupon, and may then later reconstitute them in an attempt to benefit their trading strategies.
• In Canada, investors may purchase packages of strip bonds, so that the cash flows are tailored to meet their needs in a single security.
• The bonds will help lead to the creation of a strip bond market, in which bonds are separated into coupon payments and final principal payments and sold as stand-alone securities.
• An alternative form is to use a custodian bank or trust company to hold the underlying security and a transfer agent / registrar to track ownership in the strip bonds and to administer the program.
• Physically created strip bonds ( where the coupons are physically clipped and then traded separately ) were created in the early days of stripping in Canada and the U . S ., but have virtually disappeared due to the high costs and risks associated with them.