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Short-Term Appreciation and Investment Return Trus
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A synthetic PERCS-type structure consisting of long positions in Treasury securities and short in-the-money puts on a portfolio. STAIRs have a payout pattern equivalent to PERCS and short-term equity participation units (STEP units). Also called Performance Equity-Linked Redemption Quarterly Paid Security (PERQS). See Trust for Income Participation from Stocks (TIPS). See also Preference Equity Redemption Cumulative Stock (PERCS) (diagram).
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