A mortgage bond is a mortgage backed bond secured by one or more physical/tangible assets, which could directly be a mortgage or a direct association with a real estate holding. We explore the different types of mortgage bonds and their attributes in this article.
A revenue bond is a type of municipal bond that is guaranteed for repayment through revenues generated solely by the revenue directly associated with the purpose of the bond.
A special assessment bond is a type of municipal bond which are used to financially support a development project and the interest is payable to the investors through taxes levied on the community benefiting from the bond funded project.
Taxable bonds are debt securities issued to investors that are subject to certain taxes which may include; local, state or even federal. The majority of bonds issued are subject to taxes, surprisingly enough the only that aren’t are tax-free or tax-exempt bonds which are occasionally issued by a municipality, therefore municipal bonds.
A general obligation bond is financially secured and guaranteed by state or occasionally local government and their agreement to use authentic and legal resources to honour bond repayment agreements.
Issued by a corporation and offered to investors, corporate bonds are riskier than other bond types but will give you higher rates of interest. High yield corporate bonds can be found in start-up corps, rarely so in more established, high rating corps where the yield will be lower but the risk much lower too.