What is the meaning of Interest Only?

Subtopics: IO 

Interest Only is a security whose value is predicated on a discounted interest rate structure. Typically, this is a CMO type derivative product. Prepayment activity is a dominant evaluation factor.

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APABarry Goldsmith. (2010). interest only. Retrieved September 23, 2026, from http://smartdefine.org/interest_only/definitions/1156256
ChicagoBarry Goldsmith. 2010. "interest only" http://smartdefine.org/interest_only/definitions/1156256 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, interest only, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/interest_only/definitions/1156256>.
MLABarry Goldsmith. "interest only" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/interest_only/definitions/1156256>