Strip bond security descriptions
In Canada, most investment dealers, banks, and trust companies use a security description of about 30 characters in length for their internal systems and longer descriptions for client statements. In many cases, these organizations each have their own database of securities, which can result in inconsistent security descriptions, as each firm has its own standards.
Other countries have similar standard lengths for security descriptions. The depositories offering strip bond services have developed standard formats for the strip bond security descriptions for use by their participants.
Because of the much greater range of bonds being stripped and the greater use of physical strip bonds in the early days of stripping bonds, the Canadian standards descriptions are the most complex and therefore have the most variations. In developing the standards for the Canadian depository, the standards that I developed (while working at CDS) included disclosing all pertinent information within the 30 characters. In some cases, to maximize the information, readability suffered as spaces were omitted to make room for more information.
Outlined below are the standards, for conventional strip bonds, for those countries where the information is available on public web sites.
Select a country from the list below or just scroll down.
| Austria | Belgium | Canada | France |
| Germany | Italy | Japan | The Netherlands |
| New Zealand | South Africa | Spain | Sweden |
| United Kingdom | United States of America |
United States of America 
Interest strip bonds
General format:
- Treasury book-entry stripping: TINT [maturity date of strip bond (MM/DD/YYY format)]
- Treasury physical coupons deposited: CUBE [maturity date of strip bond (MM/DD/YYY format)]
- Treasury nontradable callable coupon: NTCC XXX [maturity date of strip bond (MM/DD/YYY format)]
- Resolution Trust coupon: RFIN [maturity date of strip bond (MM/DD/YYY format)]
- Federal Agricultural Mortgage Corporation (Farmer Mac): FFIN [maturity date of strip bond (MM/DD/YYY format)]
Examples:
- TINT 12/15/2004
- CUBE 06/15/2003
Principal strip bonds
General format:
- Treasury non-callable (book-entry): [Issuer] [interest rate] TPRIN [Series letter (optional)] [maturity year]
- Treasury callable (book-entry): [Issuer] [interest rate] TCAL [callable year] [maturity year]
- Treasury tradable callable (physical): XXX/X BCAL XX-XX
- Treasury nontradable callable (physical): XX X/X NTCP XX-XX
Other issuers (name, then abbreviation for interest strips)
- Resolution Funding Corporation: RFPR
- Federal Agricultural Mortgage Corporation (Farmer Mac): FFIN
- Federal Farm Credit Banks Funding Corporation: FCII or FCLI (inflation indexed)
- The Federal Home Loan Bank System: FHIN
- Resolution Funding Corporation non-callable (book-entry): [interest rate] RFPR [maturity year] [series letter] OR [interest rate] RFPR [maturity date (MM/DD/YY format)]
- Federal Agricultural Mortgage Corporation (Farmer Mac): Treasury non-callable (book-entry): [pool or class number] FFPR [maturity date (MM/DD/YY format)] [series number] OR [pool or class number] FFPR [maturity year (YY format)] [series number] [pool or class number] FFPR [maturity date (MM/DD/YY format)] [series number] NN.NN FFPR YY A[Issuer] [interest rate] TPRIN [Series letter (optional)] [maturity year]
- Federal Agricultural Mortgage Corporation (Farmer Mac): Treasury non-callable (book-entry): [Issuer] [interest rate] TPRIN [Series letter (optional)] [maturity year]
- Treasury non-callable (book-entry): [Issuer] [interest rate] TPRIN [Series letter (optional)] [maturity year]
- Treasury non-callable (book-entry): [Issuer] [interest rate] TPRIN [Series letter (optional)] [maturity year]
Belgium 
Interest strip bonds
General format: OLO [maturity year(s) of underlying bonds] INT [maturity year of strip bond]
Examples:
- OLO 2007/2008/2015 INT 2007
- OLO 2015 INT 2009
- OLO 2003/07/08/15 INT 2003
Principal strip bonds
General format: OLO [maturity year(s) of underlying bonds] (CAPITAL) OLO [bond series number]
Example:
- OLO 2005 (CAPITAL) OLO 34
NOTES:
- Since all strippable Belgium government strip bonds mature on March 28, the maturity date is omitted from the description for both interest and principal strip bonds.
- OLO is an abbreviation for either "lineaire obligaties" (Dutch) or "obligations linéaires" (French).
France 
Interest strip bonds
General format: OBLO [maturity year(s) of underlying bonds] INT [maturity year of strip bond]
General format: [issuer name] [maturity date of strip bond] INT.PMT OAT
Examples:
- FRANCE EMPRUNT D'ETAT OBL0%251003 INT.PMT OAT
Principal strip bonds
General format: [issuer name] [maturity date of strip bond] PRINC.PMT {interest rate of underlying bond] [maturity year of underlying bond (YY format)] OAT
Examples:
- FRANCE EMPRUNT D'ETAT OBL0%251012 PRINC.PMT 4,75%12 OAT
NOTES:
- All strippable French government strip bonds pay interest on either April 25 or October 25.
- OAT is an abbreviation for "les obligations assimilables du Trésor" (French).
- Sample security descriptions obtained from the public portion of the Euroclear France security database (www.euroclear.com).
Germany 
Interest strip bonds
General format: [issuer name] OBL0% [maturity date of strip bond] INTT PAYMENT
Example:
- BUNDESREPUBLIK DEUT ZCP 04/01/05 (older version)
- ALLEMAGNE OBL0%040107 INTT PAYMENT
Principal strip bonds
General format: [issuer name] STRIP.PRINC [maturity date of strip bond]
Example:
- BUNDESREP. STRIP.PRINC. 04/01/07
NOTE:
- Sample security descriptions obtained from the public portion of the Euroclear Bank security database (www.euroclear.com).
- For interest strip bonds, Euroclear shows an expanded issuer description "BUNDESREPUBLIK ;DEUTSCHLAND STRIP CPN" and additional information "T1\H01.50\WKN113492/113502/113506". For principal strip bonds, Euroclear shows an expanded issuer description "BUNDESREPUBLIK DEUTSCHLAND/STRIP PRI" and additional information "T1\H05.00\STRIP PRINCFROM WKN 113504 ".
The Netherlands 
Interest strip bonds
General format: [issuer name] ZCP [maturity date of strip bond]
Examples:
- NEDERLAND INTEREST ZCP 15/01/28
- KINGDOM OF THE NETH ZCP 15/07/08
- NEDERLAND, ZCP 15/01/04
- NETHERLANDS/STRIPS ZCP 05/02/03
Principal strip bonds
General format: [issuer name] ZCP [maturity date of strip bond]
Example:
- NEDERLAND, ZCP 15/07/09
NOTE:
- Sample security descriptions obtained from the public portion of the Euroclear Bank security database (www.euroclear.com).
- For both interest and principal strip bonds, Euroclear shows an expanded issue description that includes the strip bond type. For principal strip bonds, Euroclear also shows the underlying bond.
Sweden 
Interest strip bonds
General format: [issuer name] ZCP [maturity date of strip bond]
Example:
- SWEDEN, KINGDOM OF ZCP 05/05/14
Principal strip bonds
General format: [issuer name] [Series number of underlying bond] [Coupon rate of underlying bond] [maturity date of strip bond]
Example:
- SWEDEN (1033) 10.2500 05/05/03
NOTE:
- Sample security descriptions obtained from the public portion of the Euroclear Bank security database (www.euroclear.com).
- For both interest and principal strip bonds, Euroclear shows an expanded issue description that includes the strip bond type.
United Kingdom 
Interest strip bonds
General format: [issuer name] Strip [maturity date of strip bond] C
Example:
- UK Treasury Strip 07JUN2007C
Principal strip bonds
General format:[issuer name] Strip [maturity date of strip bond] P
Example:
- UK 7 1/4 Treasury Strip 07DEC2007P
NOTE:
- Sample security descriptions obtained from the public portion of the Euroclear Bank security database (www.euroclear.com).
- For both interest and principal strip bonds, Euroclear shows an expanded issue description that includes the strip bond type.
Canada 
Standards are shown here for CDS book-entry strip bonds and for receipt security strip bonds. For physical strip bonds that have been deposited with CDS, CDS and financial institutions use the same descriptions as for CDS book-entry strip bonds. If the physical strip bonds have not been deposited, the second format under non-generic CDS book-entry strip bonds is recommended.
CDS uses different formats for generic strip bonds and non-generic strip bonds. For non-generic strip bonds, there are 3 formats that are commonly used within the financial industry.
In developing these standards, CDS tried to include the maximum amount of information possible within the 30 characters. Occasionally, CDS will drop spaces within the description to ensure that the pertinent information is disclosed, rather than dropping information from the description.
Select from the following list of sample descriptions to see the explanation of the format.
Click here to see the standard issuer name abbreviations used by CDS.
Generic CDS book-entry strip bonds:
| Examples | Comments | |
| Abbreviation of issuer name | CDA; ONT; BC; QUE; ON H | Usually 2 to 4 characters |
| GENERIC | GENERIC | |
| Payment type | INT; PRIN; or PMT | |
| Currency | USD | Optional - used only if currency is not CAD |
| Maturity date | 09/15/2020; 09/15/20 |
Click here to see a sample.
Non-generic strip bonds
1. Standard format used by CDS
| Examples | Comments | |
| Abbreviation of issuer name | CDA; ONT; BC; QUE; ONHY | Usually 2 to 4 characters |
| Payment type | INT; PRIN; or PMT | |
| Special feature indicators | TX; RR; CYC; tr | Each code indicates a specific feature that may affect the payments received by the holder. See chart below for details. |
| Currency | US$ | Optional - used only if currency is not CAD |
| Last 3 characters of the CUSIP number for the underlying security | JV7; 2K8; M29 | Allows the specific underlying security to be identified; last character is always numeric; at least one letter is required |
| Maturity date | 09/15/2020; 09/15/20 |
Click here to see sample descriptions.
2. Alternate format used by some financial institutions
| Examples | Comments | |
| Abbreviation of issuer name | CDA; ONT; BC; QUE; NSPC | Usually 2 to 4 characters |
| Payment type | INT; PRIN; or PMT | |
| Coupon rate of the underlying security | 12.25% | |
| Maturity year of the underlying security | 2025 | In most cases, the combination of coupon rate and maturity year is sufficient to identify the underlying security |
| Maturity date | 09/15/2020; 09/15/20 |
Click here to see a sample description.
3. Format used for residuals from bonds stripped to the next call date
| Examples | Comments | |
| Abbreviation of issuer name | CDA; ONT; BC; QUE; NSPC | Usually 2 to 4 characters |
| Payment type | PRIN | |
| Last 3 characters of the CUSIP number for the underlying security | JV7; 2K8; M29 | Allows the specific underlying security to be identified; last character is always numeric; at least one letter is required |
| Maturity year of the underlying security | 2025 | |
| Maturity date | 09/15/2020; 09/15/20 |
Click here to see a sample.
4. Alternate format used for residuals from bonds stripped to the next call date
| Examples | Comments | |
| Abbreviation of issuer name | CDA; ONT; BC; QUE; NSPC | Usually 2 to 4 characters |
| Payment type | PRIN | |
| Coupon rate of the underlying security | 12.25% | |
| Maturity year of the underlying security | 2025 | |
| Maturity date | 09/15/2020; 09/15/20 |
Click here to see a sample.
Codes used by CDS to flag special features
| Code | What the code means | Comments |
| CALL | The terms of the underlying bond allow the issuer to redeem the bond at any time, based on a formula specified in the terms on the underlying bond. | Typically, this would only apply to corporate bonds. |
| CYC | The terms of the underlying bond allow the issuer to redeem the bond prior to maturity. If the bond is redeemed, the redemption price will be based on the yields of Canadian Government securities having a similar maturity date. Refer to the terms of the underlying security for details on the formula. | Typically, this would only apply to corporate bonds. |
| IN | The payment amount will be adjusted for based on the formula and index specified in the terms of the underlying security. Refer to the terms of the underlying security for details on the formula. | |
| RR | The payment amount will be adjusted for inflation based on the formula specified in the terms of the underlying security. Refer to the terms of the underlying security for details on the formula. | Used for strip bonds derived from Government of Canada real return bonds. |
| TR | There is a separate trust agreement between a trustee and the investment dealer who created the strip bonds. The agreement provides for the allocation of payments, among the remaining strip bonds related to the underlying bond, if the issuer defaults on the bond or some other unplanned event affects the underlying bond. The agreement also provides for the allocation of voting rights if there is a bondholders' meeting for the underlying bond. | Used for a small number of corporate bonds that were stripped in the early 1990's. |
| TX | The terms of the underlying security allow the issuer to call the bond for redemption if 1) there is a change in withholding tax laws that adversely affect some investors and 2) the affected investors request additional compensation from the issuer. | Typically applies only if the underlying security originally was issued in the Euro market. |
| US$ | Indicates that the payment will be in U.S. dollars. | If not otherwise indicated, the payments are in Canadian dollars. |
| UYC | The terms of the underlying bond allow the issuer to redeem the bond prior to maturity. If the bond is redeemed, the redemption price will be based on the yields of U.S. Treasury securities having a similar maturity date. Refer to the terms of the underlying security for details on the formula. | Typically, this would only apply to corporate bonds. |
Click here to see a sample description using these codes.
| Examples | Comments | |
| Abbreviation of brand name | TIGR, SNT, CGR | |
| Abbreviation of issuer name | CDA; ONT; BC; QUE; NSPC | Usually 2 to 4 characters |
| Payment type | INT; PRIN; or PMT | |
| Coupon rate of the underlying security | 12.25% | |
| Maturity year of the underlying security | 2025 | In most cases, the combination of coupon rate and maturity year is sufficient to identify the underlying security |
| Maturity date | 09/15/2020; 09/15/20 |
Click here to see a sample description.
2. Format used for residuals from bonds stripped to the next call date
| Examples | Comments | |
| Abbreviation for brand name | TIGR, SNT, CGR | |
| Abbreviation of issuer name | CDA; ONT; BC; QUE; NSPC | Usually 2 to 4 characters |
| Payment type | INT; PRIN; or PMT | |
| Coupon rate of the underlying security | 12.25% | |
| Maturity year of the underlying security | 2025 | In most cases, the combination of coupon rate and maturity year is sufficient to identify the underlying security |
| Maturity date | 09/15/2020; 09/15/20 |
Click here to see a sample description.
See also Strip bond package description standards and Issuer name abbreviations.
NextCopyright Keith Campbell © 2002-2004. All rights reserved.