Full faith-and-credit obligations

Full faith-and-credit obligations

The security pledges for larger municipal bond issuers, such as states and large cities that have diverse funding sources.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Full Faith-and-Credit Obligation

A bond secured by an unconditional promise to pay by another entity. The term usually refers to a debt security backed by the United States government. For example, a U.S. Treasury security and a Ginnie Mae pass-through are both full faith-and-credit obligations. These securities carry very low risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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