TY - JOUR T1 - Fungible STRIPS for the U.S. Treasury's Inflation-Indexed Securities JF - The Journal of Fixed Income SP - 55 LP - 62 DO - 10.3905/jfi.1999.319230 VL - 9 IS - 1 AU - Robin Grieves AU - Michael W. Sunner Y1 - 1999/06/30 UR - https://pm-research.com/content/9/1/55.abstract N2 - Treasury inflation–indexed securities (IIS) pay semi annual interest that depends on the coupon rate on the note or bond and on inflation as measured by the Consumer Price Index for all urban consumers from the bond's date. The necessary condition for the IS interest STRIPS (TINTs) to be fungible is that cash flows from different IIS securities can be made to match. Fungible IIS TINTs can be created if, in the stripping process, par amounts of the TINTs created are converted to a common initial CPI–U. This would have no impact on the cash flows that the Treasury would pay. An accompanying necessary change, however, must be made to some market participant's computer systems to allow holdings and transfers to the penny of par value. ER -