A situation in which a government agrees to
repay a
debt no matter what. For example, if a
bond is backed by the full faith and credit of the United States, the U.S. government must find some way to repay the bond.
U.S. Treasury securities, Ginnie Mae bonds, and some other
debt securities are call
full-faith-and-credit bonds because they have this backing. Municipalities may also attach full faith and credit to their bonds, but this means less than the credit of the United States.