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Obligation bond |
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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.Obligation bond Similar MatchesFixed dollar obligationsFixed dollar obligationsConventional bonds for which the coupon rate is set at a fixed percentage of the par value. ObligationObligationA legal responsibility, such as to repay a debt. Accumulated Benefit Obligation (ABO)Accumulated Benefit Obligation (ABO)An approximate measure of the liability of a pension plan in the event of a termination at the date the calculation is performed. Related: Projected benefit obligation. Government obligationsGovernment obligationsU.S. government-backed debt instruments, which are considered among the safest investments possible, including Treasury bonds, bills, and notes, and savings bonds. 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. Further SuggestionsCollateralized Bond Obligation (CBO)Moral obligation bond Full faith and credit obligations general obligation bond Eurodollar obligations |
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