bearer bonds

Bearer bonds are a type of debt security that are not registered to any owner. They are issued in physical form and ownership is transferred simply by handing over the bond itself. This means that whoever holds the bond can claim the interest payments (coupons) and the principal upon maturity without needing to provide proof of ownership. While they offer anonymity and ease of transfer, bearer bonds are less common today due to regulatory concerns about tax evasion and money laundering. They are largely replaced by registered bonds, which track ownership records.