stripped mortgage-backed securities
- stripped mortgage-backed securities
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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Financial and business terms.
2012.
Look at other dictionaries:
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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
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… … Financial and business terms
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