Double Barreled Bonds – What They are and How They Work

Double Barreled BondsDouble Barreled Bonds are municipal bonds which carry both a revenue and general obligation pledge.  Normally when a municipality issues a revenue bond to fund a project, they are not required to pick up the tab if the revenues from the project cannot cover bond payments.  With double barreled bonds this is not the case.  Should the project not generate enough revenue to cover bond payments, then the municipality is on the hook.

For example, a municipal bond which is backed by the revenues from a toll road, and is also guaranteed by the municipality issuing the bond, would be a double barreled bond.  Because they carry double the backing of a traditional municipal bond, double barreled municipal bonds are often seen as some of the safest bonds available.

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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