Registered bond

Registered bond,

Definition of Registered bond:

  1. A registered bond is a debt instrument whose bondholder's information is kept on record with the issuing party. By archiving the owner's name, address, and other details, issuers ensure they're making the bond's coupon payments to the correct person.

  2. Bond issue where the bond owners name is on record with the bond issuer. Usually, only the registered bond owner is entitled to the interest on the bond, and to receive its principal upon its presentation for redemption. Ownership (title) of this type of bond is transferable only through endorsement by the registered owner on the assignment form printed on the back of bond certificate. Most bonds are issued in the registered form. See also bearer bond.

  3. There are two ways to register bonds. In the first way, the issuer records the name and address of the owner, which is physically printed on the bond certificate. Transferring the ownership of registered bonds requires registered owners either endorse the back of the certificate or sign the certificate over to someone else.

How to use Registered bond in a sentence?

  1. A registered bond has its owner's name and contact information recorded with the issuing entity, ensuring coupon payments are correctly distributed.
  2. Virtually all bonds in the U.S. now are registered bonds, be they corporate bonds, U.S. Treasury bonds, or municipal bonds.
  3. Bearer bonds, which don't record the owner's info, are the opposite of registered bonds.

Meaning of Registered bond & Registered bond Definition