Treasury Investors Growth Receipt

Treasury Investors Growth Receipt (TIGER)

US government-backed bonds without coupons, meaning that the bondholders do not receive the periodic interest payments. The principal of the bond and the individual coupons are sold separately.

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Treasury Investors Growth Receipt

Commonly called a TIGR, a Treasury security whose coupons have been stripped by Merrill Lynch. TIGRs therefore pay no interest. They are sold at a significant discount from par and mature at par. TIGRs fluctuate in price, sometimes dramatically, because changes in interest rates make them more or less desirable. TIGRs can be invested in IRAs and other pension accounts; they are also exempt from state and local taxes. They were originally issued between 1982 and 1986, becoming more-or-less obsolete when the U.S. Treasury began issuing its own stripped bonds. They still exist, but are fairly uncommon investments. See also: zero-coupon bonds, STRIPS.