ObligationA legal responsibility, such as to repay a debt.
Eurodollar obligationsEurodollar obligations
Certificates of deposit issued in US dollars by foreign banks and foreign branches of US banks.
General obligation bondGeneral obligation bond
A municipal bond whose interest and principal payments are supported by the full faith and credit of the issuing authority.
Obligation bondObligation bond
A 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.
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 SuggestionsFixed dollar obligations
Moral obligation bond
Full faith and credit obligations
Accumulated Benefit Obligation (ABO)