STRIPS Definition

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STRIPS, in securities, is dividing a Treasury bond or mortgage-backed security into its principal and interest payments and selling the claims to these payments as new and separate securi­ties. The principal portion is called a principal only (PO) security, and the interest portion is called an interest only (IO) security

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ROI (Return on Investment) can be calculated in various ways. The most common method is Net Income as a percentage of Net Book Value (total assets minus intangible assets and liabilities).

CARD is Certificate for Amortizing Revolving Debts; an asset-backed security backed by credit card receivables.

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