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 ?
But the higher the amount of the Baby Bond goes, the greater the cost for the federal government.
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.
CHILDREN in care will have their 'baby bond' savings accounts topped up by local authorities under plans backed by AMs yesterday.
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 many mums, Sam Preen didn't know what to think of her child's 'baby bond' when it arrived in the post.
Mr Brown will also announce increased tax breaks for families with children and highlight the "baby bond" scheme which will give families a nest egg of around pounds 500 at the birth of a baby.
I FIND it rather hypocritical of Labour to unveil the Baby Bond scheme as a means to create a meritocratic society.
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.
Mr Cooper, of Gwespyr, near Holywell, said the body only made public its proposal about a baby bond in 1999.
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.
n MAIN options include bank or building society savings accounts or a National Savings baby bond. If you want to invest in the stockmarket, try a unit trust.
I THINK the idea of the Baby Bond is good in that it will help young people when they are becoming independent, which is a difficult time.