Financial Definition of Interest-Only Strip (Io)
Meaning of Interest-Only Strip (Io)
A security based solely on the interest payments form a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop and the value of the IO falls to zero.
Related Entries of Interest-Only Strip (Io) in the Encyclopedia of Law Project
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Interest-Only Strip (Io) in Historical Law
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Legal Abbreviations and Acronyms
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