combination bond

(redirected from Double Barreled)

Combination bond

A bond backed by the government unit issuing it as well as by revenue from the project that is to be financed by the bond.

Combination Bond

A municipal bond with the coupon and principal guaranteed both by the general revenue of the municipality issuing the bond and by the revenue of the project the bond finances. If the revenue from the project is less than expected and is not enough to make payments, the municipality will make them instead. A combination bond is intended to reduce the risk to the bondholder to the least possible amount; therefore, interest rates on them are fairly low. It is also called a double-barrel municipal bond.

combination bond

References in periodicals archive ?
In the forefront of current developments in the structuring of both tax-exempt and taxable securities, the Public Finance practice includes general obligation, public utility revenue, double barreled, special obligation, special revenue, leasehold revenue, certificates of participation and other financings for governmental purposes.
o The general credit outlook for systems without legal flow control is higher risk and lower ratings--absent double barreled securities that provide credit enhancement.