The purchase of ordinary bonds (usually, U.S. Treasury bonds) that are then repackaged such that the receipts to interest and corpus payments are sold separately. The effect is to transform a security paying regular interest into zero-coupon receipts of varying maturities. Sold under a variety of names such as CATS®, LIONS, and TIGRSM, these investments have proved popular for tax-sheltered accounts such as IRAs. Generic names for them include animals and felines. Also called stripping.
