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 ?
The Children's Mutual already does this with contributions of that size into its Baby Bond and Children's Portfolios products.
If you made drawing on your baby bond contingent on spending it on education, then we might expect this to encourage further good investment that would help break the circle of poverty that the chancellor is concerned about," Prof Walker said.
The so-called Baby Bonds can be topped up to the tune of pounds 1,000 a year by friends and family.
Tax-free friendly society plans like the Children's Mutual's Baby Bond are the perfect way to save long-term for your child's future.
The Tunbridge Wells Baby Bond lets you invest from pounds 10 to pounds 25 a month for a minimum of 10 years.
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.
It is a "rite of passage", says the wise man, which helps regulate childbirth and strengthen the mother and baby bond.
2001: The Government announced plans to give every baby pounds 500 in a baby bond, which could be worth pounds 3,000 by the time they were 18.
Like Abbie, he has won a Baby Bond into which the Children's Mutual will invest pounds 1,800 until they are 18.
I FIND it rather hypocritical of Labour to unveil the Baby Bond scheme as a means to create a meritocratic society.
MODEL CHILD Olga Kurylenko aged three growing up in the Ukraine; TRAD RAGS At 7 in native dress; BABY BOND At eight months with mum; SHOOT TO THRILL In film; BOND VOYAGE Olga, 17, with pal Aleksey Vasilyev, gran Yelena and mum
Take-up of Gordon Brown's flagship baby bond scheme is lower in low-income areas and in Wales as a whole than in the affluent south-east of England, Treasury figures released last night show.