Advertising

Corpus

• Refers to the final or underlying principal amount which has been stripped, discounted and sold as a zero coupon bond. This compares to the interest only pieces which are often called strips. Some people also count the discounted principal portions as strips. It is from the Latin which means body.

 
 Embedded terms in definition
 Bond
Coupon bond
Coupon
Interest only
Interest
Principal amount
Principal
Strips
Underlying
Zero coupon bond
 
 Referenced Terms
 Cats: Are Certificates of Accrual on Treasury Securities. In a generic sense, the sliced off interest payments or coupons are called strips or zeroes. At those times the discounted bond principal is referred to as the Corpus.

 Strips: Treasury strips refers to separate trading of the principle (Corpus) and the interest coupons. Stripping means buying the bonds and selling the pieces. Reconstituting means buying the pieces and constructing the entire bonds.Are Stripped Treasury Obligations. The principal and interest payments are separated from the underlying security. The stripped principal is sometimes called the Corpus. There are many variations on this theme with names striving to set apart different firms offerings in this asset group. The stripped offerings are essentially Zero Coupon Bonds.

<< Corporation Correction >>

What Happens If a Bank Fails?: How the FDIC protects depositors, including providing quick access to insured funds. More...

Power is the faculty or capacity to act, the strength and potency to accomplish something. It is the vital energy to make choices and decisions. It also includes the capacity to overcome deeply embedded habits and to cultivate higher, more effective ones. Stephen R. Covey

Advertising



Copyright 2009-2019 GVC. All rights reserved.