• A harmless warrant is a provision that requires the holder of a bond to return the bond to the issuer if he buys another bond with similar terms from the same issuer.

  • Safe warrants prevent a bond issuer from taking on too much debt.
  • A harmless warrant does not prevent the holder from purchasing another bond with different terms from the issuer.
  • Not all bonds have harmless warrants.
  • Safe warrants force investors to decide which bond terms are most important to them and their investment goals.