Revenue Bonds Vs General Obligation
Both types of bonds promise regular interest payments to investors along with a return of principal at maturity.
Revenue bonds vs general obligation. Essential services bonds within the revenue bond category there are also essential services revenue bonds which include projects related to water sewer and power systems. Generally speaking there are two categories of municipal bonds. Revenue bonds are generally of higher risk than general obligation bonds and as a result they typically offer higher yields. The primary difference between the two is in how those payments are financed.
An in depth look at general obligation and revenue bonds. General obligation bonds and revenue bonds are two types of bonds issued by municipalities such as cities.