Go Bonds Vs Revenue Bonds

While a revenue bond is backed by a specific revenue stream holders of go bonds are relying on the full faith and credit of the issuing municipality.

Go bonds vs revenue bonds. A general obligation go bond pledges the full faith and credit of the issurer to repayment. A general obligation bond go bond is a municipal bond backed solely by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project. In most instances revenues from the project go into a revenue fund from which operating expenses and bond repayments are drawn. Revenue bonds typically come with a variety of.

Both go bonds and revenue bonds are generally safe investments although go bonds are typically considered to be safer than revenue bonds. General obligation or go bonds are backed by the general revenue of the issuing municipality while revenue bonds are supported by a specific revenue source such as income from a toll road hospital or higher education system. I own a pembroke pines fl go bond. Municipal bond forum go vs.

Generally speaking there are two categories of municipal bonds. A revenue bond mean anything. A municipality can always issue more bonds or raise taxes to pay off a go issue while a revenue bond is restricted to a single revenue stream. In a small community like that does the fact that it s a go vs.

Revenue bonds are another type of muni bond that is backed by the revenue generated by a specific project being financed by the bond issue. In other words the money raised by the bond offering directly finances the project and the project once complete generates the revenues to pay back the interest and principal on the bonds to investors. The first is known as general obligation bonds go and the second is known as revenue bonds. Typically since holders of revenue bonds can.