Acquisition debt is defined as bonds, notes, or other debt instruments that are issued by a company in connection with the acquisition of another company. The proceeds from the sale of these instruments are typically used to finance the purchase price of the target company. Acquisition debt is typically classified as long-term debt on a … Read more
A general obligation (GO) bond is a type of municipal bond that is backed by the full faith and credit of the issuer, typically a state or local government. This means that the issuer is legally obligated to repay the bondholders from any and all sources of revenue, including property taxes and other taxes. GO … Read more
A covered bond is a type of debt security that is backed by a pool of assets, typically mortgages. Covered bonds are issued by financial institutions in order to raise capital, and they are typically used to finance long-term projects such as infrastructure development. Because they are backed by a pool of assets, covered bonds … Read more
