French inflation-linked bond market eligible for stripping operations
AFT 30-04-2007
AMTE, EFFAS European Bond Commission and CNO approve the methodology proposed by the working group on stripping of OATi, BTAN€i and OAT€i. Even on amounts of around 10 billion euros, i.e. which would mean the full stripping of an inflation-linked bond, these modalities do not lead to material differences between the cash flows paid on the different coupons merged under a coupon strip, regardless of the characteristics of the underlying bonds. This fungibility is consistent with the rule of providing the same rights of claims among the holders of the same face value of a same bond, strip certificates being dealt with as separate issuances.
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