Stripping

Stripping, the separate trading of the registered interest and principal of securities, has been possible in the case of certain ten and 30-year Federal bonds since the middle of 1997. Outstanding ten-year and 30-year bonds have their coupon date on 4January , 15 February, 15 may, 4 July, 15 August or 15 November and are strippable.

The minimum amount possible for stripping is Euro 50,000. The separation of interest and principal is undertaken on behalf of the bond holder by the body (credit institution or German Finance Agency) carrying the safe custody account concerned. The reconstruction of the original bond, the underlying bond, from the coupon strip and the principal strip is also possible; however, only credit institutions, financial service institutions, securities trading firms and securities trading banks may do this with their own bond holdings. The minimum nominal amount of both the principal and coupon strips is Euro 0.01. Coupon strips with the same maturity are combined and traded under one security identification number.

The following documents contain an overview of strippable bonds, the maximum possible volumes of principal and coupon strips and data on the usage of stripping.