Nicolo
Tue Jul 30 2024
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5 answers
1093
Why do people buy strip bonds?
Can you elaborate on the motivations behind individuals and institutions choosing to invest in strip bonds? Are they primarily attracted to the segmented nature of interest payments, offering flexibility and tailored risk exposure? Or is it the potential for higher yields compared to traditional bonds, enticing investors seeking enhanced returns? Additionally, do investors view strip bonds as a hedging tool, given their sensitivity to interest rate movements? Lastly, are there any other unique benefits or considerations that make strip bonds a compelling investment option?
