How safe is my investment? Is my investment FDIC insured?
An investment in the Cat Financial PowerInvestment notes allows individuals and institutions to benefit from the financial strength of Caterpillar Financial Services Corporation. It is important to note that Cat Financial PowerInvestment is not a money market account, which is typically a diversified fund consisting of short-term debt securities of many issuers. An investment in the PowerInvestment notes does not meet the diversification and investment quality standards set forth for money market funds by the Investment Company Act of 1940. Instead, PowerInvestment notes are variable denomination, floating rate demand notes that are considered a short-term unsecured debt obligation of Caterpillar Financial and are backed only by the assets of Caterpillar Financial. While the PowerInvestment notes are not separately rated by a nationally recognized statistical rating organization and are not expected to be rated in the future, Caterpillar Financial has an “investment grade” rating from the major security rating agencies for its unsecured debt obligations. The unsecured long-term debt of Caterpillar Financial is rated A by Fitch Ratings, A by Standard & Poors and A3 by Moodys. Your investment in the PowerInvestment notes is not equivalent to a deposit or other bank account and is not guaranteed, insured, or subject to the protection of the Federal Deposit Insurance Corporation.
Caterpillar Financial Services Corporation is a wholly owned subsidiary of Caterpillar Inc. Our primary business is to provide retail-financing alternatives to customers and dealers around the world for Caterpillar Inc. products and non-competitive related equipment, provide wholesale financing to Caterpillar Inc. dealers and purchase short-term dealer receivables from Caterpillar Inc. We emphasize prompt and responsive service and offer various financing plans to meet customer requirements, increase Caterpillar Inc. sales and generate financing income.