Combination Bond

AAA

DEFINITION of 'Combination Bond'

A bond, typically a municipal bond, that has financial backing from two sources: the issuing agency and the revenue from an existing or proposed source that will benefit from the funding.

Also known as "double barrel bonds".

INVESTOPEDIA EXPLAINS 'Combination Bond'

Combination bonds differ from obligation municipal bonds, which have just the "full faith and credit" backing of the issuing government agency, and revenue bonds, which only have the backing of future revenues. Because of the extra safety provided by combination bonds, they pay a lower rate than comparable general obligation or revenue bonds.

RELATED TERMS
  1. Whoops

    Slang for the Washington Public Power Supply System (WPPSS), ...
  2. General Obligation Bond - GO

    A municipal bond backed by the credit and "taxing power" of the ...
  3. Municipal Bond

    A debt security issued by a state, municipality or county to ...
  4. Project Finance

    Defined by the International Project Finance Association (IPFA) ...
  5. Revenue Bond

    A municipal bond supported by the revenue from a specific project, ...
  6. Registered Bond

    A bond whose owner is registered with the bond's issuer. The ...
Related Articles
  1. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  2. Avoid Tricky Tax Issues On Municipal ...
    Taxes

    Avoid Tricky Tax Issues On Municipal ...

  3. 20 Investments You Should Know
    Options & Futures

    20 Investments You Should Know

  4. Projected Returns: Honing The Craft
    Retirement

    Projected Returns: Honing The Craft

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center