what are perpetual bonds

Perpetual bonds, also known as "perps," are a type of bond that has no maturity date, meaning that they do not have a set date on which the issuer must repay the principal amount to the bondholders. Instead, perpetual bonds pay a fixed interest rate or coupon indefinitely, usually on an annual or semi-annual basis.

Perpetual bonds are considered to be a form of hybrid security, as they have some characteristics of both debt and equity. While they are technically a form of debt because they pay a fixed interest rate, they have no set maturity date and do not have to be repaid like traditional bonds.