- The act of separating a debt security into different securities that are traded separately, usually giving the owner rights to either the principal or interest alone from the obligation
- A security that has been disassociated from another security and is now being traded independently
- A type of U.S. Treasury security that allows the investor to receive either interest payments or principal repayment exclusively, registered under a federal program that encourages such separation of elements of Treasury obligations
- Under certain circumstances, a financial institution may decide to strip a debt security into separate components.
- By buying a strip, investors can choose to have exclusive entitlement to either principal repayment or the interest.
- The Federal Reserve bank maintains a registration of all strips that are part of a program for the separation of U.S. Treasury obligations.