Photon bunching in parametric down-conversion with continuous wave excitation

The first direct measurement of photon bunching (g2 correlation function) in one output arm of a spontaneous-parametric-down-conversion source operated with a continuous pump laser in the single-photon regime is demonstrated. The result is in agreement with the statistics of a thermal field of the same coherence length, and shows the feasibility of investigating photon statistics with compact cw-pumped sources. Implications for entanglement-based quantum cryptography are discussed.