There are two types of stripped mortgage-backed securities: partially stripped and IO/PO securities.

Name: There are two types of stripped mortgage-backed securities: partially stripped and IO/PO securities.
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This statement is true. Stripped mortgage-backed securities can be partially stripped or IO/PO securities. Partially stripped securities separate the principal payment and interest payment into separate securities, while IO/PO securities separate the interest and principal cash flows.

There Are Two Types of Stripped Mortgage-Backed Securities: Partially Stripped