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 ?
To some, Baby Bonds sound too radical for the Unites States.
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 education class sizes would be cut using money from scrapping the Government's baby bonds scheme, only qualified teachers would teach key subjects, tests at seven and 11 would be replaced and GCSEs and A-levels would be combined into a diploma.
THE government has launched the child trust funds, dubbed baby bonds, to give each new-born baby pounds 250.
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.