SMBSs

SMBSs: stripped mortgage-backed securities (SMBSs)

Mortgage securities that separate principal and interest payments from the underlying mortgage-backed securities. SMBSs can take four forms:

- interest-only strips, called I/O strips;

- principal-only strips, called P/O strips;

- discount strips; and

- premium strips.

I/O and P/O strips are the more common of the four. Today, REMIC CMOs are used far more frequently than SMBSs to create securities with the same cash flow characteristics. American Banker Glossary

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Stripped mortgage-backed securities (SMBSs) — Securities that redistribute the cash flows from the underlying generic MBS collateral into the principal and interest components of the MBS to enhance their use in meeting special needs of investors. The New York Times Financial Glossary … Financial and business terms
SMBS — stripped mortgage backed securities ( SMBSs) Mortgage securities that separate principal and interest payments from the underlying mortgage backed securities. SMBSs can take four forms: interest only strips, called I/O strips; principal only… … Financial and business terms
stripped mortgage-backed securities — ( SMBSs) Mortgage securities that separate principal and interest payments from the underlying mortgage backed securities. SMBSs can take four forms: interest only strips, called I/O strips; principal only strips, called P/O strips; discount… … Financial and business terms

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