A mortgage bond, as one would assume, is a bond that is directly secured by a mortgage on one or more physical/tangible assets. Mortgage bonds are usually secured by real estate and/or property associated with real estate holdings. Typically speaking, mortgage backed bonds offer exclusive protection that is rarely offered by other similar bonds. They [...]
A revenue bond as its rather apt name would suggest is a type of municipal bond that is specifically guaranteed for repayment through revenues generated solely by an entity or source of revenue directly associated with the purpose of the bond. The revenue stipulated in the legal contract established between the bond holder and issuer [...]
A special assessment bond is firstly a type of municipal bond, which as we have covered in previous articles are debt security bonds issued by a state or municipality to finance capital expenditure. Special assessment bonds are used to financially back a development project and the interest is payable to the investors through taxes levied [...]
An official definition would lead us to say that taxable bonds are debt securities whose return to the investors are subject to certain taxes, such as local, state or federal. The vast majority of bonds that are issued are subject to taxes and are therefore applicable as taxable bonds. In the past, when traditional issuers [...]