Quarterly Income Preferred Securities (QUIPS)
What it is:
Quarterly income preferred securities (QUIPS) are hybrid, preferred-stock-like securities issued by Goldman, Sachs & Co.
How it works (Example):
The LLC partnership, the full amount of the interest payments has to flow through to the QUIPS holders.the proceeds to the parent. The parent receives the proceeds and pays interest to the LLC, which uses the to pay quarterly dividends to QUIPS holders. Because the LLC is a
QUIPS typically have par values of about $25. In some cases, the can extend the .of 30-50 years and
QUIPS are usually listed on an exchange, and they trade like preferred stock.
Why it Matters:
QUIPS are essentially issued by the parent, but they look like . However, because the parent is technically getting a loan from its subsidiary, it gets to deduct the interest payments on its tax return.