Moral Obligation Bond

Atlantic Financial Investment Word RSS Feed

A Moral Obligation Bond is a revenue bond which, in addition to its primary source also receives a state pledge to make up shortfalls in a debt service fund. There is no legal obligation for the state to make such a payment, but market participants recognize that a failure to honor the moral pledge could hurt the states creditworthiness.

Moral Obligation Bond - definition

Back to the top of the page for Moral Obligation Bond

Copyright © 1994-2022 Atlantic Financial - AF Asset Management Corp. All Rights reserved. AF Asset Management Corp. is a Registered Investment Advisor located in Massachusetts using the trade name Atlantic Financial. Atlantic Financial / AF Asset Management is not affiliated with a broker dealer and does not provide brokerage services. Please read our form ADV as well as appropriate memorandums and prospectuses before investing.