Feb 19

Treasury STRIPS - 4 min. screencast

by David Harper, CFA, FRM, CIPM

FRM |

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Find helpful highlights on STRIPS at www.treasurydirect.gov. P-STRIPS and C-STRIPS are popular because:

  • They can be combined or re-constructed into any required sequence of cash flows
  • They are more sensitive to interest rates (i.e., higher duration) than coupon-bearing bonds (all other things being equal).

Here is a 4-minute introduction:

Comments

  1. nichas 19 Feb 2008

    This is a very good tutorial into strips. thanks
    It would be very good if the advantages and disadvantages are explained with the 10year Treasury strip example in the previous part of the presentation. for example: short term C-strips trade rich means discounted price of the first coupon is higher than the last coupon. Exemplifying is worth since that confirms my understanding. I understand your time limit of the presentation too. Thanks

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