Types of Municipal Securities
Chapters in this video
- 0:00 GO bonds versus revenue bonds: the fundamental split
- 1:16 Short-term anticipation notes: TANs, RANs, BANs, GANs, and TECP
- 3:44 Special municipal securities: moral obligation, double-barreled, and COPs
- 5:56 Why pre-refunded bonds are rated AAA
- 6:08 Municipal fund securities: 529 plans and ABLE accounts
- 9:07 Rapid-fire exam recap
What this video covers
- How general obligation (GO) bonds and revenue bonds differ on backing, voter approval, risk, and maturity structure
- What TANs, RANs, BANs, GANs, TRANs, and tax-exempt commercial paper (TECP) are, and how each short-term note is named for its specific repayment source
- Why moral obligation bonds carry more risk than GO bonds: the state legislature has no legal duty to appropriate funds
- How double-barreled bonds provide dual security from both project revenue and full faith and credit, versus COPs and lease revenue bonds subject to annual appropriation risk
- Why advance refunded (pre-refunded) bonds are rated AAA: they are backed by escrowed U.S. government securities, not the original issuer's credit
- How 529 plans and ABLE accounts function as municipal fund securities under Municipal Securities Rulemaking Board (MSRB) jurisdiction, including contribution limits, rollover rules, and tax treatment
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