July
04
/ 2023
In 1648, the Water Board of Lekdijk Bovendams faced the challenge of raising funds for essential embankment repairs. They decided to issue a unique bearer bond, promising annual payouts to its holder indefinitely. This financial concept, known as perpetual debt, was common during the Middle Ages. Unlike modern bonds with fixed maturity dates, perpetual bonds endure as long as the issuing entity survives. Fast forward 3½ centuries to Yale University in the USA, where this remarkable bond found its way. Having passed through multiple water board organizations, it now resides with Stichtse Rijnlanden, which continues to honor the bond's interest payments. The bond's fascinating history lies in the fact that it was supported by taxing the beneficiaries of the protected
