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Hence the fabled journey each year of the [[Belgian dentist]] in which he would set out in his Citroën 2CV with only his favourite pork-pie hat, a brown suit and a battered suitcase full of carefully clipped coupons, cross the border, present his coupons to the Luxembourg [[paying agent]] and promptly depart on a two-week bacchanalian bender in the Balearic before returning to his maxillofacial practice in Brussels' red-light district on the first day of September. | Hence the fabled journey each year of the [[Belgian dentist]] in which he would set out in his Citroën 2CV with only his favourite pork-pie hat, a brown suit and a battered suitcase full of carefully clipped coupons, cross the border, present his coupons to the Luxembourg [[paying agent]] and promptly depart on a two-week bacchanalian bender in the Balearic before returning to his maxillofacial practice in Brussels' red-light district on the first day of September. | ||
Of course, there aren't any security-printed bonds any more - everything is in dematerialised, book-entry form - so these days a "[[coupon]]" can refer to any [[interest]]-like payment, under loans, swaps etc, or specifically to the interest payment obligation under a bond as a discrete [[financial instrument]] from its host [[bond]]. | ===[[Coupon stripping]]=== | ||
Each [[coupon]], once detached, is its own transferable [[promissory note]] and can trade in the same way as the [[bearer bond]] from which it was detached trades. One can make a vigorous livelihood from arbitraging the value of attached and detached coupons. This is called [[coupon stripping]]. | |||
===The good old days=== | |||
Of course, there aren't any security-printed bonds any more - everything is in dematerialised, book-entry form - so these days a "[[coupon]]" can refer to any [[interest]]-like payment, under loans, swaps etc, or specifically to the interest payment obligation under a bond as a discrete [[financial instrument]] from its host [[bond]]. The only place you're likely to encounter a real coupon is framed and on the wall of an ironic but cool restaurant in Transylvania. | |||
{{Sa}} | {{Sa}} | ||
[[Belgian dentist]] | [[Belgian dentist]] | ||