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. What You Need To Know About Preferred ...
    Trading Strategies

    What You Need To Know About Preferred ...

  4. Understanding The Bond Behemoth That ...
    Mutual Funds & ETFs

    Understanding The Bond Behemoth That ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center