A contingent convertible (CoCo) bond that has no set maturity date. Like any perpetual bond (perp or consol bond), this type of bond (fixed-income security) is not callable (redeemable), and therefore it is perceived to be closer to equity than debt. It pays a fixed stream of interest over time, and virtually endlessly.

However, in practice, CoCo bonds may only have very long tenors such as 50 years. An in reality, investors generally expect such bonds to be paid back after just several years. Nevertheless the name, most of the CoCo bonds have call dates, allowing the issuer (borrower) to redeem the bonds any pay back the principal amount.

Investors hold perpetual bonds primarily because of their higher interest payment compared to ordinary bonds, which is meant to compensate for the risk that borrowers could bear due to the relatively longer maturity, which render such bonds more of the nature of stocks paying regular dividends.