Telemus Blog

Treasury Strips (T-Strips): What They Are and How to Invest in Them

Written by U.S. News & World Report | Dec 7, 2023 9:00:00 PM

 


Treasury Strips (T-Strips) offer an interesting investment option, ideal for aligning future liabilities with specific maturities. As CIO Matt Dmytryszyn, states, "the benefit of a Strip is it effectively creates a zero-coupon bond with a defined maturity," making them highly flexible for investors with specific financial needs. However, their long durations make them sensitive to interest rate fluctuations, requiring careful consideration of risk tolerance. Investors can choose to purchase individual Strips directly for precise control or invest in ETFs for greater liquidity and diversification.