A favorite quote-
“The car is the closest thing we will ever create to something that is alive.” ~ Sir William Lyons
Currently Reading: The Bomber Mafia by Malcolm Gladwell
Municipal bonds are a key part of many investor’s portfolios and there are two common types.
- General obligation bonds are issued by states, cities or counties and not secured by any assets. Instead, general obligation are backed by the “full faith and credit” of the issuer, which has the power to tax residents to pay bondholders.
- Revenue bonds are not backed by government’s taxing power but by revenues from a specific project or source, such as highway tolls or lease fees. Some revenue bonds are “non-recourse”, meaning that if the revenue stream dries up, the bondholders do not have a claim on the underlying revenue source. Source: Investor.Gov
Until next time,