HomeDefinitionsCompareDebt Interest only strip (IO)The financial definition for Interest only strip (IO):A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero. Similar MatchesAmortizing interest rate swapAmortizing interest rate swapSwap in which the principal or notional amount rises (falls) as interest rates rise (decline). And interestAnd interestAn indication that the buyer will receive accrued interest in addition to the price quoted for a bond. Any interest dateAny interest dateA call provision in a municipal bond indenture that establishes the right of redemption for the issuer on any interest payment due date. Further SuggestionsAssumed interest rateBest interests of creditors test Capitalized interest Cash flow after interest and taxes Compound interest Consumer interest Covered interest arbitrage Click to compare definitions of Interest only strip (IO) Click to view definitions beginning in |