General Obligation Bond

A municipal bond which is backed by the full faith and credit of a municipality. It includes the authority to raise taxes and/or borrow to pay back interest and principal. See Bond.

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Nickname for Government National Mortgage Association (GNMA), a wholly-owned corporation of the U.S. Government that functions as part of the Department of Housing and Urban Development (HUD). Also means a security that represents a pool of mortgages exceeding $1 million that is packaged from individual home mortgages and resold to investors who receive both principal and interest, just like a bank that holds a home mortgage. These securities are liquid and U.S. Government insured.