Mini Corporate Bonds (PINES, QUIBS, Perpetual Debt, etc.)

Are you looking for a list of Mini Bonds TM ? These are bonds that are traded on the New York Stock Exchange or American Stock Exchange for around $25 per share. They are almost like preferred stocks except that they pay interest instead of dividends and they usually have a specific maturity date. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt, which means that there is no maturity date.

The advantages of Mini Bonds to the issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).

The advantages to the investor are first, that the bonds are 'safer' than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock). Second, the Mini Bonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop, however the par value (usually $25) will be paid back at maturity. Preferreds have no maturity. The third benefit is the small denomination, especially when looking at a $2,000 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond.

Examples of companies that issue these MiniBonds are:

AT&T
Con Ed
Duquesne Light
General Electric Capital
General Motors
Georgia Power
GMAC
Hilton Hotels
ING
Phoenix Companies
Stilwell

The Yahoo link below will bring you to a long list of these Mini Bonds:
yahoo.com

As always, no recommendation is made with regard to the purchase, sale, short or holding of any of the above listed stocks, or any stocks mentioned on this blog.

Services and products referred to herein are trademarks, registered trademarks, servicemarks, or registered servicemarks of their respective trademark or servicemark owners.