Certificates of Accrual on Treasury Securities - CATS

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.

Notes:

Secure investments backed by the U.S. Government, CATS are part of the feline family of U.S. Treasury zero-coupon offerings (CATS, COUGRs and TIGRs).

See also: COUGRs, TIGRs, Treasury Strips, Zero-Coupon Bond