Treasury Receipt

Treasury Receipt

A Treasury security whose coupons had been stripped by an intermediary. Treasury receipts therefore paid no interest. They were sold by a brokerage at a significant discount from par and matured at par. Treasury receipts fluctuated in price, sometimes dramatically, because changes in interest rates made them more or less desirable. Treasury receipts could be invested in IRAs and other pension accounts. Examples included COUGRS, TIGRS, and CATS. They largely became obsolete when the U.S. Treasury began issuing its own stripped bonds in 1986. See also: STRIPS.