Baby Bond with 21% YTM

I don’t do much credit investing but occasionally find a decent idea that I can own; this is one of those situations.

Baby bonds are your everyday corporate bond just in smaller denominations. A typical corporate bond has a par value of $1000 and can sometimes be limited to institutional investment. Baby bonds generally have a par value of $25-50 making them attractive to retail investors.

These can trade like preferred stocks despite having the seniority of a credit investment and plenty of these baby bonds have been getting thrashed in the 2023 financial “panic.”

Here’s a quick rundown on a baby bond I like: