Types of bonds

in #esteem7 years ago

There are many kinds of municipal bonds, in terms of how the
bonds are backed financially. They include general-obligation bonds,
special tax bonds, revenue bonds, insured municipal bonds and
more.
GENERAL-OBLIGATION BONDS. Municipal bonds are usually not
secured by physical property; instead, they are debts payable from
the state or local governments’ general tax revenues. G-O bonds are
normally considered to be high-quality and highly secure investments, in line with the creditworthiness of the issuer.
HOUSING AUTHORITY BONDS. Housing authority bonds are issued
to pay for low-rent housing projects and are backed by the promise of
unconditional, annual contributions by the Housing Assistance
Administration, a government agency. These bonds are considered
among the highest in quality.

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