The process of selling a bond cum dividend and then repurchasing the bond ex dividend, designed to convert the coupon element of the bond's price into a capital gain, rather than receiving the coupon as income. This does not however, affect the investor's tax liability since the element of the gain on sale due to the interest accrual in the bond's price is taxed as income in the UK. Dresdner Kleinwort Wasserstein financial glossary
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When a bond-holder sells a security-cum-interest and buys it back after the coupon is paid so as to convert the interest income into a capital gain. This is worthwhile only where lower tax rates apply to capital gains.
Financial and business terms. 2012.