Reconstitution

CFA Level I
#1

What is it? And no, this has nothing to do with the changing the First Amendment. :slight_smile:

#2

“reconstitution of securities” mean the process of reuniting principal with previously stripped coupon components, even if the coupons originate from different bonds, for the purpose of obtaining new securities; for inflation-linked securities the reconstitution of a security also includes reuniting the inflation-indexed component

#3

Nice. Did you really write that yourself?

#4

Nope. below you can find the link: :wink: http://www.dt.tesoro.it/ENGLISH-VE/Public-Deb/Italian-Se/Rules-on-T/New-decree-about-coupon-stripping-for-BTPs-and-BTP-is---D.M.-28.12.2007.pdf

#5

reconstitution is opposite of stripping is what i understand.

#6

Ya’ll need to answer these questions without looking it up! :stuck_out_tongue:

#7

According to the Italian government yes :slight_smile:

#8

amberpower Wrote: ------------------------------------------------------- > Ya’ll need to answer these questions without > looking it up! :stuck_out_tongue: Amber I read didnt though about coupon stripping :slight_smile: This word took me completely “black”