Bearer Bonds...

Discussion in 'Professional Trading' started by achilles28, Oct 1, 2006.

  1. achilles28


    My knowledge on Bearer Bonds is limited.
    But I would like to know more.

    1) Which countries/institutions/banks regularly issue bearer bonds?

    2) Are Bearer Bonds freely convertible from one country to another (or one bank to another)? Or do convertibility constraints exist?

    3) What common denominations are Bearer Bonds issued in?

    Thats all i can think of for now. Any helpful resource suggestions would be appreciated :)

  2. In Die Hard I the villain Hans Gruber, played by Alan Rickman, wanted a payoff in German bearer bonds. The idea was that he could be lounging by the pool in some Caribbean paradise and receiving millions in annual interest payments that would be *untraceable.* A bearer bond is an unregistered bond and the person in possession of the bond redeems attached coupons. Kinda like unmarked twenties and very appealing to international criminals.
  3. I think bearer bonds are now illegal in the U.S. In other words new issues cannot be bearer form and only old treasuries issued many many years ago which are bearer are still allowed.

    Harder to track taxation issues and easier to move illegal funds with bearers so U.S. made them illegal years ago for new issues. Bearers are still very popular in Europe and elsewhere in the world.
  4. achilles28


    Great. Thats what Im looking for.

    Will most European banks/Governments issue them? How does the process work?
  5. achilles28



    So did it work out for Hans?
  6. Nah. His suitcase flew open and they jostled in the wind. There might still be some flying around Nakatomi Plaza in LA though.
  7. achilles28


    He should have had a lock on the suitcase :)
  8. achilles28



    Any additional contributions welcome :)
  9. well, maybe off topic but not much; am really curious if anyone here trade corporate bonds and can illuminate me as how they beahave, margins, settlement, etc. and above all the r/r and results they achieved.

    any info greately appreciated