General Obligation Bonds

General Obligation Bonds (GOs) are a type of debt issued by governments, typically at the state or local level, to raise funds for public projects, such as schools, roads, or parks. They are backed by the government’s taxing power, meaning that if needed, the government can raise taxes to pay back the bondholders. This makes GOs generally considered low-risk investments since they have a reliable source of repayment. Investors receive interest payments and the principal back when the bonds mature, making them an attractive option for funding essential community services and infrastructure.