Coupon Strip Notification
Coupon Strip Notification. Notification that the debt security is to be stripped, that is that interest coupons for future payment dates are separated from the security corpus that entitles the holder to the principal repayment.
THis will result in two securities where previously there was one. REVIEW: precise details for the relation between the stripped instrument and the traded interest and principal components (does one of the remain the same security, or are two new securities created and one retired?); also account for recombination. SWIFT full text: "Coupon stripping is the process whereby interest coupons for future payment dates are separated from the security corpus that entitles the holder to the principal repayment."
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