ETD Baby bond：List of Baby Bonds and Related Information – Exchange ...

“Baby bonds”, “exchange traded debt”, “ETD” or just plain “bonds” is how we refer to debt instruments that are traded on exchanges that are more typical for common stocks.

The securities we follow and are most typically called “baby bonds” are debt instruments with face values of $25, $50 or $100. Specifically any debt that is exchange traded with a face value of less than $1000 is a “baby bond”.

They may be labeled Notes, Senior Notes, Debentures, Junior Debentures or any of a number of different names, but for the most part they are the same.  They are junior to secured debt, and senior to common and preferred stock in the capital stack.

Income received on Baby Bonds is interest and thus if held in a taxable account the income will be taxed at ordinary tax rates.

Maturity dates on baby bonds typically range from as little as 2 years all the way up to 100 years. Business Development Companies (BDC’s) normally issue the shortest maturity baby bonds, wh...