Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How else do stripped RRBs differ from “regular” RRBs?

April 26, 2017differ regular rrbs stripped

0

Posted

How else do stripped RRBs differ from “regular” RRBs?

1 Answer

0

Posted

Strips usually have a slightly higher yield and a much higher volatility because they make no interest payments prior to maturity. And because of their lower liquidity you’ll likely pay a higher spread if you need to sell them before they mature.