Baby bond

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Baby bond

A bond with a par value of less than $1000.

Baby Bond

Informal; a bond with a face value of less than $1,000. Small companies issue baby bonds, especially when they wish to attract small investors and/or lack access to institutional investors.

baby bond

A bond that has a principal amount under $1,000. Baby bonds may be issued by firms hoping to attract investors who do not have funds to purchase bonds with $1,000 principal. On occasion, bonds of less than $1,000 principal are issued as part of a corporate refunding. Because baby bonds are unusual, they may be more expensive to trade.

Baby bond.

Bonds whose par values are less than $1,000 are often described as baby bonds, or, in the case of municipal bonds, as mini-munis.

Small companies that may not be able to attract institutional investors, such as banks and mutual fund companies, may offer baby bonds to raise cash from individual investors.

Some municipalities also use baby bonds to foster involvement in government activities by making it possible for more people to invest.

References in periodicals archive ?
Even if we used existing nonprofit infrastructures to their maximum, the government would have to put aside (but not initially spend) money for baby bonds, pay out money when service is rendered, and pay for the operational costs of the program.
The KIDS accounts, like Clinton's baby bonds, would be a brand new entitlement, he points out, not a replacement for the present welfare state.
On the economy, a 50p top rate of income tax on salaries for those earning over pounds 100,000, cash from baby bonds, ID cards and industrial subsidies spent instead on pensions, police and education, the National Audit Office given the right to scrutinise public finances, the stamp duty threshold increased to pounds 150,000 and work permit quotas introduced for economic migrants.
But I think the government could spend the money they're spending on baby bonds on far more important things like health care and things like that.
The government's Baby Bonds - or Child Trust Funds to give them the correct name - have been arriving through letter boxes giving youngsters the chance to get on to the savings ladder at the earliest opportunity.
Kids will get more cash for their futures with baby bonds doubling in value when they turn seven.
In his mini-Budget last December he announced plans to introduce baby bonds.
Boots polled 3,900 people as they launched a Mutual Baby Bonds scheme.
Baby Bonds, from Tunbridge Wells Equitable Friendly Society, provide a secure way for parents, grandparents, aunts and uncles to invest and put a little away each month in a savings plan that grows free of income and capital gains taxes.
If applicants for the baby bonds have any questions they should contact their local Sovereign Bank branch manager.
Middle-income families will also lose entitlements to baby bonds and child tax credit, while Mr Osborne promised to save more than pounds 7bn by slashing one-third from the cost of running Whitehall and the quangos.