A security for which ownership is determined solely by possession of the physical certificate, allowing for anonymous transfer and posing risks for illegal activities like money laundering and tax evasion.
Coupon stripping is a financial process in which the coupons are stripped off a bearer security and then sold separately as a source of cash, with no capital repayment; the bond, bereft of its coupons, becomes a zero coupon bond and is also sold separately.
A Paying Agent is typically a bank or another financial institution that is contracted under a paying agency agreement to manage the payment of interest and principal sums due on a bearer security.
