CATS

(1) In the case of a coupon bond, the interest coupons have been detached in order to trade the bond and each of the coupons separately, as standalone securities. These non-interest bearing instruments are traded at a lower price than their value at maturity. Buyers expect to obtain a return on their investment from the gradual increase in value of the instrument up to maturity. (2) STRIPS is also an acronym for Separately Traded Registered Interest and Principal Securities. (3) Other expressions are also used, such as certificate of accrual on Treasury securities (CATS), certificate of government receipts (COUGRs), Treasury investment growth receipts (TIGRs), Treasury STRIPS, and Treasury receipts (TRs).