The nature of `little blue dots'
Previous Sirocco radiative-transfer models of gas-cocooned AGN predicted lower-column counterparts to little red dots (LRDs): compact, X-ray-weak sources with bluer continuum slopes and Balmer jumps rather than Balmer breaks. The recently identified population of little blue dots (LBDs) closely resembles this predicted phase. Here we explore these lower-column-density cocoons in which nebular recombination emission remains visible while strong Balmer-continuum absorption is avoided. We find that a sequence of increasing column density connects more classical AGN spectra, Balmer-jump LBD-like spectra at $N_{\rm H}\!\sim\!{\rm few}\times10^{24}\,\mathrm{cm^{-2}}$, and Balmer-break LRD-like spectra at higher columns. Along this sequence, electron scattering produces exponential line wings and suppresses X-ray emission before strong Balmer absorption features emerge. The models predict that LBDs should share X-ray weakness and exponential line wings with LRDs, while being distinguished by Balmer jumps in emission, weak or absent absorption features, potential He II $λ$4686 emission, lower H$α$ luminosities and narrower H$α$ lines. We compare with spectra of eight LBDs and find that significant Balmer-jump signatures are common. We therefore suggest that LBDs are lower-column analogues of LRDs within a common gas-cocooned AGN sequence.