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.

Investopedia Says:
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 and TIGRs).

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U.S. Treasury issues, sold at a deep discount from face value. A Zero-Coupon security, they pay no interest during their lifetime, but return the full face value at maturity. They are appropriate for retirement or education planning. As Treasury Securities CATS cannot be Called Away.

U.S. Treasury issues, sold at a deep discount from face value. A zero coupon security, they pay no interest during their lifetime, but return the full face value at maturity. They are appropriate for retirement or education planning. As Treasury securities, CATS cannot be called.