- EasyGrowth Treasury Receipts
=EasyGrowth Treasury Receipts, ETRs=
EasyGrowth Treasury Receipts, nicknamed 'eaters', are
fixed income securities issued byDean Witter Reynolds (laterMorgan Stanley ) in the 1980s. ETRs arezero-coupon bonds because they trade at a discount topar value (which is usually $1,000) and they mature at par and throughout their life they pay nointerest (interest accrues as principal). For example if you purchased ETRs today that mature in 10 years you might pay $600 for one bond that will be valued at $1,000 (par) in 10 years. ETRs are also categorized as treasury receipts because the underlying securities are US Treasury Bonds therefore all payments are backed byUS Treasury securities . The most liquidzero-coupon bonds in theUnited States are calledSTRIPS , these are created by taking apart (or stripping) the coupons off of US Treasury Bonds.ETRs are no longer created because STRIPS are now the product of choice in this category due to their excellentliquidity and because they can be created (stripped) by anyfinancial institution . Other treasury receipts were also created in the United States by other firms such as TBRs (E.F. Hutton ), TIGRs (Merrill Lynch ), CATS (Salomon Brothers ) and COUGRs (A. G. Becker ). Most treasury receipts were nicknamed after animals such as 'teddy bears' (TBRs), 'tigers' (TIGRs), 'cats' (CATS) and 'cougers' (COUGRs) but ETRs were named after a common fictitious character of the 1980sET from the hit movie.ee also
* STRIPS
*fixed income securities
*US Treasury securities
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