January 25, 2017
The City of Cambridge is trying to attract small investors to buy its municipal bonds, to fund work on schools, streets, and ball fields. The so-called minibonds will be available in increments of $1,000, instead of the usual $5,000. They’ll have a duration of five years and will be part of $2 million in bonds set aside for Cambridge residents in a total $65.8 million public debt offering. The munis will be sold online, with no fee, according to Cambridge Budget Director Jeana Franconi. Neighborly Securities, a San Francisco-based brokerage, will handle the sales. Franconi said the city was looking at “how we could engage the community more in our financial process.” The minibonds will be priced Feb. 17 and will be sold through Feb. 23. Current yields on such bonds, which are tax-exempt, would be 1.6 percent.