Definition for: GO Bond
A "GO bond" or "general obligation bond" is a municipal bond (a debt instrument) that is backed by the issuing municipality's power to tax and by its ability to borrow money (its credit). These bonds can be contrasted to bonds that are secured by a municipality's assets or those which are backed by the promise of future revenue from a bond-financed project. The rating for a GO bond depends upon the issuing jurisdiction's perceived ability to pay back the debt.
