Certificates of Accrual on Treasury Securities (CATS)
Issued by the U.S. Treasury and stripped by a financial intermediary, these products are sold at a significant discount from face value and pay no interest during their lifetime. However, they return full face value and cannot be called away. Investopedia Says:
CATS are secure investments backed by the U.S. government, and are part of the feline family of U.S. Treasury zero-coupon offerings (CATS, COUGRs and TIGRs). Related Terms:
Certificate of Government Receipts -COUGRs
Treasury Investment Growth Receipts - TIGRs
Treasury STRIPS
Zero-Coupon Bond |