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Baby Bonds: What to Know Before Investing

The Motley Fool

In other words, they're not backed by any underlying assets or collateral. However, as with other debt instruments, baby bonds are senior to a company's preferred shares and common stock and are paid before preferred and common shareholders in the event of a default.

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Transcript: Steven Klinsky

The Big Picture

KKR took a stock exchange company called who Houdaille, private, and it was the first time there’ve been — RITHOLTZ: ’79 or something like that? And if they don’t need a loan, we can lease them their own building back in a net lease, and have both the credit of the company and the real estate as collateral.