Strip

Definition - Noun
: a security traded separately from another after stripping
specif
: a derivative mortgage-backed security created by the segregation of cash flow from the underlying mortgages or other mortgage-backed securities and entitling the investor to a specified percentage (as 100 percent) of the interest or principal paid

Definition - Transitive Verb
: to divide (a debt security) into separately traded securities entitling the owner usu. to either principal or interest alone from the obligation



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Based on Merriam-Webster's Dictionary of Law ©2001.
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