A security based solely on the interest payments form a pool of mortgages , Treasury bonds , or other bonds . Once the principal on the mortgages or bonds has been repaid, interest payments stop and the value of the IO falls to zero.
INTEREST-ONLY STRIP (I.O.)
Meaning of INTEREST-ONLY STRIP (I.O.) in English
Campbell R. Harvey. Hypertextual finance English glossary. Английский словарь гипертекстовых финансов. 2012