Baby bond


Also found in: Dictionary.

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 ?
Improving the lives and finances of the bottom 90 percent is likely to take some dramatic changes, which is why Slok was interested in hearing more about the Baby Bond idea.
The baby bond or service bond idea has been operating in this way in Great Britain on a modest scale since 2003; even if we just copied that model, it would be a way to get equity spread around to more young people who can put it to productive use.
He failed to form a relationship with Baby Bond and did not demonstrate the "fatherly concern" required by Edwards.
Mr Cooper, of Gwespyr, near Holywell, said the body only made public its proposal about a baby bond in 1999.
n MAIN options include bank or building society savings accounts or a National Savings baby bond.
I FIND it rather hypocritical of Labour to unveil the Baby Bond scheme as a means to create a meritocratic society.
I'm not even sure what we get, but I know it's fairly miniscule and the pounds 250 baby bond we've been promised hasn't materialised yet.
Like Abbie, he has won a Baby Bond into which the Children's Mutual will invest pounds 1,800 until they are 18.
For example, pounds 25 a month paid into a baby bond for the last 18 years would now be worth pounds 16,956.
Alex Ross, from Penygraig, has been named the South Wales regional winner in the Baby Bond Photography Award.
Increased financial support and the idea of a baby bond were welcomed by the National Family and Parenting Institute, but Ministers must introduce more family-friendly policies to ease the burden, said chief executive Mary MacLeod.
This third installment explores what influences the baby bond and what can jeopardise it.