Stripped Money Backed Security (SMBS) Law and Legal Definition
Stripped money backed securities are securities created by stripping or separating the principal and interest payments from mortgages into two classes of securities, with each receiving a different proportion of the principal and interest payments. SMBS is the interest or principal paid on debt securities, rather than together. These securities allow investors to choose either an interest strip or principal strip depending on the interest rates. SMBS are highly sensitive to changes in interest rates.
Legal Definition list
Related Legal Terms
- Abandoned Security Property [Agriculture]
- Access Control List [National Security]
- Access Control Mechanism [National Security]
- Accessible Space [National Security]
- Action for Money had and Received
- Action for Money Lent
- Action for Money Paid
- Adequate and Full Consideration in Money or Money’s Worth
- Adverse Claim on Security
- Agricultural Biosecurity
