A strip that represents the non-principal portion of the regular payments on the underlying receivables. This constitutes a contractual right to receive a certain portion or all of the interest due on the amounts owed. It is an interest only strip (IO strip) that does not come in theĀ form of a security, but rather as an amount directly owed towards the creditor.
In accounting, interest-only strips receivables do not belong to intangible assets.
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