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 2, 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 2, 2026). |
| Harvard | Barry Goldsmith 2010, stripped mortgage-backed securities (smbss), Smart Define, viewed 2 October, 2026, <http://smartdefine.org/stripped_mortgage-backed_securities_(smbss)/definitions/1164390>. |
| MLA | Barry Goldsmith. "stripped mortgage-backed securities (smbss)" 21 October 2010. Web. 2 October 2026. <http://smartdefine.org/stripped_mortgage-backed_securities_(smbss)/definitions/1164390> |