Daily Archives: February 7, 2024

Fixed-income securities: Meaning, Types, and risks involved

Fixed-income securities are investments where the cash flows are according to a predetermined amount of interest, paid on a fixed schedule. Fixed-income securities are investments where the cash flows are according to a predetermined amount of interest, paid on a fixed schedule. There are different types of fixed-income securities such as Government securities, Corporate bonds,…

What is a STRIP in your financial assets?

STRIP is an acronym that is commonly used to denote ‘Separate Trading of Registered Interest and Principal of securities’. This is a complex-sounding term however, in reality, the meaning is quite simple. STRIPS are the securities created by way of separating the cash flows associated with a regular G-Sec i.e. each semi-annual coupon payment and…