Certificates Of Accrual On Treasury Securities - CATS

AAA

DEFINITION of '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. These bonds were issued between 1982 and 1986.

INVESTOPEDIA EXPLAINS 'Certificates Of Accrual On Treasury Securities - CATS'

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, LIONs and TIGRs). CATS became obsolete when the U.S. government began directly issuing its own STRIPS in 1986.

RELATED TERMS
  1. Lehman Investment Opportunity Note ...

    A type of zero-coupon Treasury bond issued by the U.S. government ...
  2. Zero-Coupon Bond

    A debt security that doesn't pay interest (a coupon) but is traded ...
  3. Certificate Of Government Receipts ...

    U.S. Treasury fixed-income securities that are stripped of their ...
  4. Treasury Investment Growth Receipts ...

    Stripped Treasury securities offered at a significant discount ...
  5. Treasury Receipt

    A zero-coupon bond that doesn't pay interest at regular intervals ...
  6. Treasury STRIPS

    An acronym for 'separate trading of registered interest and principal ...
Related Articles
  1. Advanced Bond Concepts
    Bonds & Fixed Income

    Advanced Bond Concepts

  2. The Money Market
    Retirement

    The Money Market

  3. Are Equity-Indexed Annuities Right For ...
    Savings

    Are Equity-Indexed Annuities Right For ...

  4. 10 Sources Of Nontaxable Income
    Taxes

    10 Sources Of Nontaxable Income

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center