Resumen
This paper tests whether U.S. dollar-denominated global bonds are valued differently if the debt is sold in registered form or bearer form. The global bonds are simultaneously sold and traded in two or more distinct geographic markets. Since 1982, all bonds denominated in U.S. dollars and targeted to be sold or traded in the United States or offered to U.S. investors must be registered. Approximately 98 percent of global bonds denominated in US dollars are registered. Bearer bonds can be sold by U.S. agencies e.g. Freddie Mac and corporations e.g., Citibank if such securities are not be sold to a U.S. investor. Interest on the obligation is payable only outside the United States, and the face of the obligation contains a statement that any U.S. investors who holds the obligation is subject to the United States income tax laws. Bearer obligations are subject to theft, flood or fire, and expose the owners to present value losses if interest coupons or the bonds are presented to the paying agents late. Registration provides the investors with improved security and timely access to information, if called. Bearer obligations allow investors to evade income tax obligations. Governmental authorities believe criminals often use bearer bonds because such instruments are traded with anonymity. This research shows that registration is a statistically significant variable that affects the risk and the pricing of global bonds. Investors will accept a lower yield or pay a higher price for bearer bonds. The results are consistent with a crime/tax evasion hypothesis rather than a security hypothesis. Keywords: Global Bond, Yield Spread, Ownership Structure, Registered Bond, Bearer Bond.