baby bond

Baby Bond

Any bond issued with a par value less than $1,000.

Investopedia Commentary

Baby bonds are usually issued by corporations that lack access to large institutional markets. These companies make their bonds more affordable to attract small investors.

Related Links

Bond Basics Tutorial

See also: Bond, Par Value

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.