A type of bond that, unlike most bonds, isnít recorded as being registered to a particular person when it is issued. As such the issuer will assume bearer bonds are owned by whoever has them in their possession, and so they are similar to cash. Bearer bonds are usually issued with coupons attached that the owner must tear off and submit in order to receive interest payments when they fall due.
Bearer bonds are increasing rare in developed economies. They offer no protection against loss or theft, and anyway bonds arenít physically issued now anyway Ė the systems are electronic Ė making the concept impossible.