# 🥦 STRIPS

By [Let Them Eat Cake](https://paragraph.com/@ltecake) · 2022-06-21

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**TL,DR: Like broccoli florets, STRIPS isolate the desirable part of the product**

**STRIPS / Broccoli Florets**

\- partial products packaged for individual sale

**Eatamology**

“STRIPS” is an acronym for Separately Trading of Registered Interest and Principal of Securities. Ironically named, they allow investors to strip apart the coupon payments from the principal amount of a Treasury product.

**Financials**

Popular STRIPS behave like the zero coupon bonds mentioned below, which like sale items, are sold at a discount. Most retail investors do not invest in individual STRIPS, but will see them show up in a Money Market Fund or conservative ETF.

**Zero Coupon / Final Sale**

Like a final sale, when a store looks to sell food approaching expiration, zero coupon bonds are sold at a discount and have a short shelf life. Buyers may pay $990/bond instead of the standard $1000/bond, and instead of periodic interest payments, they will receive $1000 back at maturity. When Bills are sold as zero coupon bonds, investors refer to them as STRIPS.

**Nutrition Facts**

Price: Premium

Issue Frequency: bi-weekly

Maturity: Short

Interest/Coupon Amount: Low - Medium

Coupon Type: Zero

Yield: Low - Medium

Tax Status: Tax Exempt

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*Originally published on [Let Them Eat Cake](https://paragraph.com/@ltecake/strips)*