Strip financing

From Wikipedia, the free encyclopedia

This article is an orphan, as few or no other articles link to it. Please introduce links to this page from other articles related to it. (February 2009)

It has been suggested that this article or section be merged into Zero-coupon_bond#Strip_bonds. (Discuss)

Strip financing is the repackaging of different types of obligations—debt, preferred stock, common stock etc.—into one security. The idea is to ease conflicts of interest between the holders of the initial components, bond- and stockholders. Also, repackaging can raise a securities' liquidity.