Obligation bondA municipal bond with a face value greater than the value of the underlying property. The difference is designed to compensate the lender for costs exceeding the mortgage value.
Moral obligation bondMoral obligation bond
A tax-exempt bond issued by a municipality or a state financial intermediary that is backed by the moral, but not legal, obligation of a state government to appropriate funds in case of default .
Eurodollar obligationsEurodollar obligations
Certificates of deposit issued in US dollars by foreign banks and foreign branches of US banks.
Fixed dollar obligationsFixed dollar obligations
Conventional bonds for which the coupon rate is set at a fixed percentage of the par value.
Collateralized mortgage obligation (CMO)Collateralized mortgage obligation (CMO)
A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through security.
Collateralized Bond Obligation (CBO)Collateralized Bond Obligation (CBO)
Investment-grade bonds backed by a collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved. CBOs backed by highly risky junk bonds receive higher interest rates than other CBOs.
Further SuggestionsAccumulated Benefit Obligation (ABO)
general obligation bond
Full faith and credit obligations