Bearer bond

A bearer bond is a bond or debt security issued by a business entity such as a corporation, or a government. As a bearer instrument, it differs from the more common types of investment securities in that it is unregistered—no records are kept of the owner, or the transactions involving ownership.

Bearer bonds are government or corporate issued debt instruments that differ from traditional bonds, in that they're unregistered as investment securities.

A bearer bond, often called a coupon bond, is a bond whose certificate includes small detachable coupons. The coupons grant interest payments to the holder from the borrower. Coupon bonds are called bearer bonds because anyone who presents the coupon to the issuer is entitled to the interest payment even if that person is not the owner of the bond.