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Monthly Income Preferred Shares (MIPS)
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A complex instrument based on an intracompany loan between a limited liability issuer and its parent company. The instrument is designed to give the parent equity treatment for regulatory, rating and capital purposes, and tax deductibility for the coupon on the instrument. Some versions of this instrument may achieve the desired tax objective, but all tax issues have not been resolved. Also called Exchangeable Preferred Income Cumulative Shares (EPICS), QUarterly Income Capital Securities (QUICS), QUarterly Income Preferred Securities (QUIPS), Trust Originated PReferred Securities (TOPRS).
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