Blue Harbor Bonds

What the token is

BHB is a note issued by a Luxembourg securitization vehicle, and each compartment holds a portfolio of investment-grade corporate bonds. The portfolio today is 68% euro-denominated and 32% dollar, average rating BBB+, weighted duration 4.1 years.

The token is a claim on one compartment. That matters more than it sounds: compartments are ring-fenced from each other under Luxembourg law, so the thing you are underwriting is the compartment and not the issuer as a whole.

How it gets priced

This is the question most bond products dodge, and the answer here is written down. Prices come from a two-source policy: an evaluated price from a data vendor, and a dealer quote where the bond did not trade that day. Where the two disagree by more than 50 basis points the administrator takes the lower one and logs it.

We asked for the log. There were nine such days in the last year, and every one of them was a single position in the same illiquid line.

What the issuer answered

The full questionnaire, on the first pass. Ultimate beneficial ownership, the compartment’s own accounts rather than only the consolidated ones, the custody agreement with Ostend, and the redemption gate language.

The gate is real and worth reading. Redemptions above 10% of the compartment in a single month can be scaled back at the board’s discretion. It has never been used. It exists.

What is still open

The FY2025 audit is on the vehicle. The compartment-level figures are reviewed rather than audited, which is normal for this structure and is still a step down from what the fund-shaped products in this database publish.