Bearer bonds, a type of fixed-income security, are debt instruments that do not bear the name of the owner. Unlike registered bonds, bearer bonds are not recorded in a central registry, making them easier to transfer and trade. Bearer bonds are often used in bearer bond funds.
The main advantage of bearer bonds is their anonymity. Because they are not registered in the name of the owner, bearer bonds can be bought and sold without revealing the identity of the owner. This feature has made bearer bonds popular among investors who wish to maintain their privacy.