Bank Backed Bonds – What They are and How They Work

 

bank backed bondsBanked Back Bonds are municipal bonds which carry an agreement with a commercial bank who will provide support to the municipality if they run into trouble making their debt payments.  There are varying levels of bank support provided depending on the agreement between the issuer and the bank.

For more definitions and explanations please visit the Learn Bonds glossary where we give the meaning of many additional bond terms.

 

Learn More

Municipal Bond Defaults, Safety, and Credit Ratings
Municipal Bond Yields
How to choose a municipal bond fund
How to buy municipal bonds

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