Mortgage securities that separate principal and interest payments from the underlying mortgage-backed securities. SMBSs can take four forms: interest-only strips, called I/O strips; principal-only strips, called P/O strips; discount strips; and premium strips. I/O and P/O strips are the more common of the four. Today, REMIC CMOs are used far more frequently than SMBSs to create securities with the same cash flow characteristics.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). stripped mortgage-backed securities (SMBSs). Retrieved October 1, 2026, from http://smartdefine.org/stripped_mortgage-backed_securities_(smbss)/definitions/1164390 |
| Chicago | Barry Goldsmith. 2010. "stripped mortgage-backed securities (SMBSs)" http://smartdefine.org/stripped_mortgage-backed_securities_(smbss)/definitions/1164390 (accessed October 1, 2026). |
| Harvard | Barry Goldsmith 2010, stripped mortgage-backed securities (SMBSs), Smart Define, viewed 1 October, 2026, <http://smartdefine.org/stripped_mortgage-backed_securities_(smbss)/definitions/1164390>. |
| MLA | Barry Goldsmith. "stripped mortgage-backed securities (SMBSs)" 21 October 2010. Web. 1 October 2026. <http://smartdefine.org/stripped_mortgage-backed_securities_(smbss)/definitions/1164390> |